By Bo Erickson

WASHINGTON (Reuters) -President Donald Trump’s increased tariffs on U.S. imports from foreign countries could reduce the national deficit by $4 trillion over the next decade, the Congressional Budget Office estimated on Friday.

If Trump’s global tariff hikes continue, increased revenue could shrink primary deficits by $3.3 trillion and cut federal interest payments by $0.7 trillion over the next decade, CBO, Congress’ nonpartisan analyst, said.

The current top tariff rates may not hold as negotiations with trading partners and international legal challenges are ongoing.

But the additional tariff revenue could help offset the deficit increases triggered by the Republicans’ tax-cut and spending bill passed this year. CBO estimated this would widen the deficit by $3.4 trill

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