President Donald Trump’s tariff policies are projected to cut California’s tax revenue by $16 billion in the next fiscal year, Governor Gavin Newsom’s finance department said in a memo. The 4% drop in revenue from a previous estimate is largely due to a stock market downturn last month after the president announced his sweeping tariff campaign on April 2,

The case argues that Trump lacks authority under the International Emergency Economic Powers Act to impose the tariffs he announced on April 2 on nearly all U.S. trading partners.