(The Center Square) – The Congressional Budget Office slashed its tariff revenue forecast to reflect new data on the highest import duties the U.S. has seen in nearly a century.
The CBO, which Congress created to help evaluate economic and budgetary policies, said the new projections show tariff changes will reduce deficits by $3 trillion over the next decade. That’s down from the CBO’s earlier estimate of $4 trillion in August.
The latest update from CBO Director Phillip Swagel found the increase in tariffs implemented since President Donald Trump took office would decrease primary deficits by $2.5 trillion over 11 years if the higher tariffs persist throughout the 2025–2035 period. By reducing the need for borrowing, those tariffs will lower federal interest costs on debt by $500 billion.
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