DEFICIT: For the first time the CBO is admitting Trump’s tariffs (or threat of tariffs) could cut the deficit by trillions.
h/t @WallStreetMav pic.twitter.com/zWbOMhWf2G
— @amuse (@amuse) December 20, 2024
The CBO estimates that a uniform increase in tariffs of 10% on all imports would decrease the federal deficit by $2.2 trillion over the next decade. An additional 50% tariff on Chinese imports would further reduce the deficit by $0.8 trillion, bringing the total potential reduction to $2.9 trillion.