The Congressional Budget Office (CBO) projects that President Trump's tariffs could reduce the federal deficit by $2.8 trillion by 2035 if they remain in place. This offsets the $2.4 trillion deficit increase projected from the House-passed budget bill. However, the CBO notes significant uncertainty due to the unprecedented scale of the tariffs and potential legal challenges. The tariffs are also expected to cause higher inflation and slower economic growth, impacting both rich and poor families.

Prepared by Christopher Adams and reviewed by editorial team.