Gov. Gavin Newsom said two factors are largely to blame for a $12 billion budget shortfall facing California: expanding health care to immigrants without legal status, and Trump’s tariffs.

Although the administration locked in a trade deal with Britain and says it has others on the horizon, Trump's tariff policies have spurred on market volatility and been met with skepticism from many Americans, including California Gov. Gavin Newsom.

From the moment Donald Trump proclaimed 100% tariffs on movies produced in “foreign lands, ” a throw-down with Gavin Newsom was inevitable. Now the California governor wants Trump to get behind a national tax incentives program similar to what other nations have been using for years, but with a lot more zeros at the end.