President Donald Trump’s global tariffs on imports from other nations will lower U.S. deficits by $3 trillion if they are kept in place through 2035—a decrease from a $4 trillion estimate in August, the non-partisan Congressional Budget Office (CBO) announced on Nov. 20.
The CBO said its estimates are based on tariffs implemented between Jan. 6 and Nov. 15, which are set to lower primary deficits by $2.5 trillion if they’re maintained for 11 years. Government borrowing costs should also fall by roughly $500 billion as a result.
“Roughly two-thirds of the downward revisions result from adjustments to reflect new data,” the CBO noted. “Modifications to tariffs, which on net lowered the effective tariff rate (although rates on certain products were higher in November than they were in August), also reduced the estimated effect on the deficit.”…