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Tariff Hikes Could Slash Deficits by $2.8 Trillion

6/5/2025

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Summary

Story summary

The Congressional Budget Office (CBO) predicts that U.S. tariff hikes could slash federal deficits by a staggering $2.8 trillion over the next decade, primarily through increased customs revenue. While a slight economic contraction and a 0.4% inflation rise are anticipated, proponents believe these tariffs could revitalize manufacturing jobs and challenge conventional anti-tariff arguments.

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Story summary

The Congressional Budget Office (CBO) predicts that U.S. tariff hikes could slash federal deficits by a staggering $2.8 trillion over the next decade, primarily through increased customs revenue. While a slight economic contraction and a 0.4% inflation rise are anticipated, proponents believe these tariffs could revitalize manufacturing jobs and challenge conventional anti-tariff arguments.