Trump’s tariffs would cut US deficits by $2.8T over 10 years and shrink the economy, CBO says

KEY TAKEAWAYS:

CBO projects $2.8 trillion deficit cut over 10 years

Tariffs expected to raise inflation by 0.4 percentage points

Household purchasing power and GDP likely to decline

Steel and aluminum tariffs raised to 50% effective Wednesday

President Donald Trump’s sweeping tariff plan would cut deficits by $2.8 trillion over a 10-year period while shrinking the economy, raising the inflation rate and reducing the purchasing power of households overall, according to an analysis released Wednesday by the Congressional Budget Office .

The numbers were revealed in a letter sent to Democratic congressional leadership outlining how the Trump administration’s plan to impose wide-ranging tariffs on countries around the world will affect American households.

Baked into the CBO analy