Trump Tariffs to Cut U.S. Deficit by $1-T Less Than Previous Estimate

President Trump’s tariff increases on imports from foreign countries will reduce US deficits by $1 trillion less than previously estimated, according to data from the nonpartisan Congressional Budget Office (CBO), Jenny McCall reported for Yahoo Finance.

Some federal courts have ruled that the administration overstepped its authority in imposing the tariffs. (Photo: Business Wire)

The CBO said recently that the deficit will be reduced by $3 trillion if these measures are maintained through 2035, instead of the $4 trillion the agency projected in August.

The estimate is based on tariffs imposed by Trump between January 6 and November 15.

The agency said primary deficits would be reduced by $2.5 trillion over 11 years, with government borrowing costs expected to fall by $500 billion as a result.

Reuters also reported that the revision was mainly based on new data, with the remainder stemming from the Trump administration’s recent changes to its tariff policies.

Some federal courts have ruled that the administration overstepped its authority in imposing the tariffs, as the US Constitution grants Congress powers over trade policy.

The US Supreme Court is reviewing those decisions.