CBO Slashes US Budget Tariff-Savings Estimate by $1 Trillion

Nov. 20, 2025, 10:17 PM UTC

The Congressional Budget Office slashed its estimate of longer-term US fiscal savings from President Donald Trump’s tariff hikes by $1 trillion, in a move that may deepen concerns about American borrowing needs.

The nonpartisan agency now sees higher customs revenue contributing a $2.5 trillion cumulative reduction in budget deficits over the 2025-35 period relative to what the government would otherwise have logged. The CBO also tallies $500 billion in savings from reduced interest costs thanks to smaller budget deficits.

That $3 trillion in total savings over 11 years compares with a $4 trillion calculation made back in August, the ...

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