CBO says tariffs could raise $4 trillion over next decade, raise prices

(The Center Square) – The Congressional Budget Office's estimated that President Donald Trump's tariffs could bring in $4 trillion over the next decade, but will raise consumer prices and reduce the purchasing power of U.S. families.

The most recent estimate includes changes to tariffs through Aug. 19 that CBO Director Phillip Swagel said reduce total deficits by $4 trillion altogether over the next decade. Tariff revenue also is expected reduce the need for federal borrowing and cut spending on interest by $700 billion.

The CBO report includes a caveat: "The estimates are subject to significant uncertainty, largely owing to questions about timing, possible exceptions, and a lack of precedents."

The CBO said it estimated that the effective tariff rate for goods imported into the U.S. in