Tariffs Will Reduce US Deficits by $1 Trillion Less Than Previous Estimate: Congressional Budget Office

‘Roughly two-thirds of the downward revisions result from adjustments to reflect new data,’ the CBO noted.

Shipping containers to be transferred from the port of Long Beach, Calif., on Oct. 14, 2021. John Fredricks/The Epoch Times

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.