CBO Revises Trump Tariff Impact, Cutting Deficit Estimate by $1 Trillion

The Congressional Budget Office (CBO) has released a major update on the impact of former President Donald Trump’s tariff plan. The new numbers are surprising. The CBO now says that tariffs would reduce the U.S. federal deficit by $1 trillion less than it first estimated. This change shakes up the debate in Washington and among global markets. We know tariffs affect many things: prices, trade flows, and government revenue. When the CBO revises its forecast, it matters. It tells us how the economy is reacting and what the government’s money picture might look like. And because trade and tariffs touch everyone, from businesses to households, this is something we all should follow.