The latest estimate is based on tariffs imposed between January 6 and November 15.
Primary deficits would be reduced by $2.5 trillion over 11 years, with government borrowing costs falling by around $500 billion as a result, a CBO release said. The August estimate was $3.3 trillion and $700 billion respectively.
President Donald Trump’s raised tariffs on imports will reduce US deficits by $3 trillion if these continue till 2035, the non-partisan Congressional Budget Office (CBO) recently estimated, instead of the $4 trillion it projected in August.
Primary deficits would be reduced by $2.5 trillion over 11 years, with government borrowing costs falling by around $500 billion as a result, CBO said.
The revision was primarily based on new data, with the remainder stemming from the administration’s recent changes to tariff policies.
Fibre2Fashion News Desk (DS)