President Donald Trump’s increased tariffs on U.S. imports could reduce the national deficit by $4 trillion over the next 10 years, according to the Congressional Budget Office (CBO).

The CBO estimates that tariff-related revenue could shrink primary deficits by $3.3 trillion and reduce federal interest payments by $0.7 trillion.

The big picture: These projections assume continuation of tariff hikes globally, though current top tariff rates may fluctuate due to ongoing negotiations and legal challenges. • The additional revenue from tariffs may help offset an estimated $3.4 trillion increase in the deficit caused by the Republicans’ recently passed tax-cut and spending bill. • The U.S. federal debt currently stands at $37.18 trillion and has grown under both Republican and Democratic

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