Trump's tariffs would cut US deficits by $2.8T over 10 years and shrink the economy, CBO says

President Donald Trump’s sweeping tariff plan would cut deficits by $2.8 trillion over a 10-year period while shrinking the economy, raising the inflation rate and reducing the purchasing power of households overall, according to an analysis released Wednesday by the Congressional Budget Office. The numbers were revealed in a letter sent to Democratic congressional leadership outlining how the Trump administration’s plan to impose wide-ranging tariffs on countries around the world will affect American households. Baked into the CBO analysis is a prediction that households would ultimately buy less from the countries hit with added tariffs.