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Trump's Tariffs Could Slash Deficits by $4 Trillion

8/25/2025

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Summary

Story summary

The Congressional Budget Office (CBO) estimates President Trump's tariffs may lower total deficits by $4 trillion in ten years.
The effective tariff rate has risen by 18 percentage points since last year, decreasing primary deficits and federal borrowing.
Trump asserts CBO endorsement of his tariff strategy, although some Republicans criticize the CBO's evaluations of his economic policies.

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Story summary

The Congressional Budget Office (CBO) estimates President Trump's tariffs may lower total deficits by $4 trillion in ten years.
The effective tariff rate has risen by 18 percentage points since last year, decreasing primary deficits and federal borrowing.
Trump asserts CBO endorsement of his tariff strategy, although some Republicans criticize the CBO's evaluations of his economic policies.