US tariffs to cut deficits by $3 trn if maintained till 2025: CBO

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.

The revision was primarily based on new data, with the remainder stemming from the administration's recent changes to tariff policies.

ALCHEMPro News Desk (DS)