CBO: Trump's Tariffs Could Reduce Deficit but Harm Economy and Increase Inflation
TL;DR
The Congressional Budget Office forecasts that President Trump's tariffs could reduce the US federal deficit by $2.8 trillion over the next decade if they remain in place, though there are significant uncertainties and potential economic impacts, including higher inflation and slower growth.
- Trump's tariffs could cut deficit by $2.8 trillion over next decade — with caveats NPR
- Trump's tariffs would cut US deficits by $2.8T over 10 years and shrink the economy, CBO says AP News
- CBO’s New Tax and Tariff Estimates Offer Trump a Tentative Win Bloomberg.com
- Budgetary and Economic Effects of Increases in Tariffs Implemented Between January 6 and May 13, 2025 Congressional Budget Office (.gov)
- CBO says Trump's tariffs will shrink the economy and add to inflation but reduce the deficit ABC News
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