Trump tariffs to slash deficit by $2.8 trillion over 10 years: CBO

President Donald Trump's tariffs will reduce federal deficits by $2.8 trillion over ten years, after accounting for other economic impacts, the Congressional Budget Office estimated in a letter to Senate Democrats this week.

"In CBO’s assessment, the changes in tariffs will reduce the size of the U.S. economy—in part because of tariffs imposed by other countries in response to the increases in U.S. tariffs. After accounting for that change in the size of the economy, CBO estimates that the changes in tariffs will reduce total federal deficits by $2.8 trillion," it read.

The figure comes amid backlash from some Senate Republicans to the "big, beautiful bill" over its impact on federal spending. Trump, for his part, gloated over the report, saying "[s]hockingly, the Democrat controlled CBO just announced that the Tariffs will be reducing the Deficit by at least $2.8 Trillion Dollars. Too bad this information couldn’t have been released earlier, it would have kept people from knowingly saying untruths."

Democrats have been vocal critics of Trump's tariffs, which have also faced legal challenges over the president's authority to impose them. The CBO did not provide numerical estimates as to their impact on overall economic growth.