US President Donald Trump's increased tariffs on U.S. imports from foreign countries could reduce the national deficit by $4 trillion over the next decade, the Congressional Budget Office estimated on Friday.
If Trump's global tariff hikes continue, increased revenue could shrink primary deficits by $3.3 trillion and cut federal interest payments by $0.7 trillion over the next decade, CBO, Congress' nonpartisan analyst, said.
The current top tariff rates may not hold as negotiations with trading partners and international legal challenges are ongoing.
But the additional tariff revenue could help offset the deficit increases triggered by the Republicans' tax-cut and spending bill passed this year. CBO estimated this would widen the deficit by $3.4 trillion over the next decade.
The U.S. federal debt is $37.18 trillion, according to the Treasury Department. It has continued to grow under Republican and Democratic administrations as the U.S. Congress continues to authorize the federal government to spend more money than it takes in.
Lawmakers face a government funding deadline at the end of September or risk a shutdown if spending bills are not passed.
The latest CBO estimate marks an increase from June when it forecast a $2.5 trillion reduction in primary deficits and a $500 billion cut in interest outlays.
U.S. tariff rates across countries and products averaged 16.7% in August, up from 15.1% in June, according to Oxford Economics. More than $26 billion in duties have been assessed by U.S. Customs and Border Protection this fiscal year, far surpassing the hundreds of millions recorded in the previous year, according to the analysis.
If Trump's global tariff hikes continue, increased revenue could shrink primary deficits by $3.3 trillion and cut federal interest payments by $0.7 trillion over the next decade, CBO, Congress' nonpartisan analyst, said.
The current top tariff rates may not hold as negotiations with trading partners and international legal challenges are ongoing.
But the additional tariff revenue could help offset the deficit increases triggered by the Republicans' tax-cut and spending bill passed this year. CBO estimated this would widen the deficit by $3.4 trillion over the next decade.
The U.S. federal debt is $37.18 trillion, according to the Treasury Department. It has continued to grow under Republican and Democratic administrations as the U.S. Congress continues to authorize the federal government to spend more money than it takes in.
Lawmakers face a government funding deadline at the end of September or risk a shutdown if spending bills are not passed.
The latest CBO estimate marks an increase from June when it forecast a $2.5 trillion reduction in primary deficits and a $500 billion cut in interest outlays.
U.S. tariff rates across countries and products averaged 16.7% in August, up from 15.1% in June, according to Oxford Economics. More than $26 billion in duties have been assessed by U.S. Customs and Border Protection this fiscal year, far surpassing the hundreds of millions recorded in the previous year, according to the analysis.
You may also like
Oil purchases serve both national and global interests by stabilising prices: EAM Jaishankar
Ashnoor Kaur posts a special selfie before entering "Bigg Boss" house, says will miss parents
What you see first in baffling optical illusion shows whether you're 'right or left-brained'
This is India's slowest train, it covers 46 kilometers in five hours... then why is there so much crowd
Tata Motors, DIMO introduce 10 new commercial vehicles in Sri Lanka
