US EditionCBO Says Tariffs Could Raise $4 Trillion over Next Decade, Raise Prices
The Congressional Budget Office projects that increased tariff rates could shrink primary deficits by $3.3 trillion and reduce interest payments by $700 billion over the next decade.
- On August 25, 2025, the Congressional Budget Office reported that President Trump's tariff hikes could generate $4 trillion in revenue over the next decade.
- These tariffs led to an increase in effective import duties roughly 18 points higher than in 2024, with the goal of strengthening domestic manufacturing and lowering trade deficits.
- The CBO warned that increased tariffs will lead to higher costs for consumer goods, diminishing the buying power of U.S. households and businesses, and causing a short-term rise in inflation.
- Economist Justin Wolfers emphasized that tariffs function as a tax, meaning the government collects revenue from them, countering the belief that only foreign countries bear the cost.
- This tariff policy implies a potential $4 trillion deficit reduction but faces uncertainties including legal challenges, evolving trade talks, and economic impacts on U.S. consumers.
17 Articles
17 Articles
'No chance': Economist scoffs at CBO's eyebrow-raising new Trump tariff projection
A prominent economist criticized estimates released on Monday that projected President Donald Trump's tariff policies could reduce the federal deficit by trillions over the next decade. Justin Wolfers, economics professor at the University of Michigan, joined CNN's Jake Tapper on "The Lead" to discuss estimates from the Congressional Budget Office showing Trump's tariffs could reduce the federal deficit by $4 trillion over 10 years. As of Aug. 2…
InsideNoVA.com
CBO says tariffs could raise $4 trillion over next decade, raise prices
(The Center Square) – The Congressional Budget Office's estimated that President Donald Trump's tariffs could bring in $4 trillion over the next decade, but will raise consumer prices and reduce the purchasing power of U.S. families.
Trump is bringing in enough revenue from tariffs to cut deficits by $4 trillion over the next decade, CBO says
In just two months, Trump added another $1.5 trillion of deficit reduction in the form of new tariffs, CBO said. Still, the One Big Beautiful Bill Act will raise deficits by $3.4 trillion.
Tariffs projected to reduce deficit by $4 trillion over 10 years, CBO reports
by WorldTribune Staff, August 24, 2025 Real World News If President Donald Trump’s tariffs policy is followed over the next 10 years, the funds from tariffs collected will results in a $4 trillion reduction in total U.S. deficits, according to the Congressional Budget Office (CBO). “As a result of the increases in tariff rates, revenues […]
CBO Projects Tariffs to Cut Federal Deficit by $4 Trillion, But American Consumers Bear the Financial Burden - Mahomet Daily
The Congressional Budget Office projected that President Trump’s escalating tariff policies could reduce the federal deficit by $4 trillion over the next decade. While this substantial deficit reduction may appear as a fiscal victory, American consumers and businesses, not other countries, are footing the bill for this government revenue through higher prices. The CBO’s latest analysis found that the effective tariff rate for goods imported int…
Trump Says Will Reduce Drug Prices By Around 1,500%
US President Donald Trump said on Monday that he will reduce drug prices by 1,400% to 1,500%, while reiterating his promise of slapping higher tariffs on the import of pharmaceuticals. "Going to do a number on costs of drugs in US," he said during the briefing. This comes nearly a month after Trump, in letters to pharmaceutical majors like Johnson & Johnson and Pfizer, set a deadline of Sept. 29 to lower drug prices.Trump asked them to extend th…
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