Summary
The Congressional Budget Office (CBO) reports that President Trump's tariffs will reduce the deficit by $3 trillion over the next decade, which is $1 trillion less than previously expected. This change might make it harder to justify Trump's proposed $2,000 checks from tariff revenues, which face opposition from Senate Republicans.
Key Facts
- President Trump's tariffs are expected to cut U.S. deficits by $3 trillion over ten years.
- The new deficit reduction estimate is $1 trillion less than earlier projections.
- Tariffs in place from January 6 to November 15 are projected to reduce primary deficits by $2.5 trillion if they stay until 2035.
- The lower deficit could save an estimated $500 billion in interest.
- The revised deficit estimate is based on actual tariff revenue and rate reductions, including changes for China.
- More than a third of U.S. imports are not affected by tariff changes this year.
- President Trump plans to offer $2,000 tariff checks by mid-2026.
- Senate Republicans prefer to use the money for deficit reduction instead of the proposed checks.
