CBO Warns: Trump's Tariffs to Hit U.S. Economic Output
The Congressional Budget Office (CBO) reveals that President Donald Trump’s tariffs will reduce U.S. economic output while lowering federal deficits by $2.8 trillion over ten years. The tariffs, contested legally, are expected to increase consumer and capital goods costs, impacting the economy adversely.
- Country:
- United States
The Congressional Budget Office has issued a stark warning about the economic implications of President Donald Trump's tariffs on foreign goods. According to CBO estimates, these tariffs, effective from May, will lead to a decline in U.S. economic output.
On a somewhat positive note, the same report indicates that federal budget deficits could be reduced by a staggering $2.8 trillion over the next decade. However, the potential economic gains seem overshadowed by the increased costs that consumers and businesses may face.
The CBO's findings were detailed in a letter addressed to Senate Democratic Leader Chuck Schumer, highlighting the legal challenges these tariffs have sparked and their expected impact on various goods' prices.
(With inputs from agencies.)
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