Trump tariffs will reduce deficits by $4 trillion over next decade, CBO says

Published August 22, 2025 12:54pm ET



The Congressional Budget Office projected that President Donald Trump’s tariff agenda, if maintained, would decrease total deficits by up to $4 trillion over the next decade.

The CBO, Congress’s nonpartisan scorekeeper, released the updated projections on Friday. The CBO found that the effective tariff rate for goods imported into the United States has increased by a notable 18 percentage points from last year.

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