The Congressional Budget Office revealed that tariffs imposed by former President Donald Trump could reduce the US national deficit by about $4 trillion over the next decade.
The report explained that these additional revenues could reduce the primary deficit by $3.3 trillion and lower federal interest payments by $0.7 trillion, opening the door to a wide debate about the ability of this policy to revive the public finances of the United States.
However, the office warned that the continuation of these tariffs is not guaranteed, given the ongoing trade negotiations with international partners, in addition to legal challenges that could limit the effectiveness of these measures.
This comes at a time when the US federal debt has surpassed the $37 trillion mark, amid increasing pressure on lawmakers to fund the government before the end of September to avoid the specter of a government shutdown.
Analysts believe these tariffs may provide a boost to revenues, but they also threaten to escalate trade disputes and slow global economic growth, making the future of the US deficit dependent on a complex mix of politics and economics.
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