Tariffs put in place by President Donald Trump will take a big bite out of U.S. deficit levels, reducing them by $2.5 trillion over the next decade and shrinking the size of the U.S. economy. A Congressional Budget Office analysis showed that the deficit reduction is almost exactly the same size as the deficit addition that would result from the GOP’s “big, beautiful bill.” The Hill says a separate analysis from the CBO found the bill would add up to $2.4 trillion to deficits through 2034. The tariffs measured by the CBO are those in place from January 6 through May 13 and include the trade truce with China announced on May 12. Despite announcing several pauses in tariffs on other countries, several tariffs are still in effect despite negotiations with those countries. The overall tariff rate is now between 10 and 15 percent, the highest level in decades.
