Source: Foundation for Economic Education
by Caitlin Peters
“The Golden State of California is in the red. It surpassed a $12 billion deficit on May 13th. This comes as a major blow after California was recently ranked the 4th largest economy in the world, thanks in part to tourism, agriculture, shipping, and semiconductor manufacturing. According to the International Monetary Fund, California brought in $4.10 trillion in nominal GDP, below Germany and China. Despite this economic strength, a combination of President Trump’s tariff policies and escalating government spending has made matters worse. The Port of Los Angeles has been impacted by tariffs on China, with incoming cargo down 25%.” (06/21/25)