CBO Vindicates Trump, Admits Tariffs Will Reduce Deficit By Trillions

A new report released by the Congressional Budget Office, which regularly releases information to Congress concerning the impact of tariffs, has finally admitted that President Donald Trump’s tariffs are going to reduce the deficit.

The report revealed that as of Aug. 19, the current tariff rate on goods brought into the U.S. has risen about 18 percentage points when measured against figures from 2024. CBO officials say this increase will help draw down primary deficits by a whopping $3.3 trillion if the higher tariff rate continues for the period of 2025-2035.

One of the reasons for the drop, according to the CBO, is that the tariffs reduce the need for federal borrowing. The money collected from the tariffs will reduce federal outlays for interest by another $0.7 trillion. The total reduction in deficits will reach $4 trillion.

The numbers are higher than those proposed back in June. The data used to come up with these estimates is gleaned from the Census Bureau, Customs and Border Protection, and the Treasury Department.

“The methods account for a diversion of trade from countries facing high tariff rates to other countries facing lower tariff rates. The estimates are subject to significant uncertainty, largely owing to questions about timing, possible exceptions, and a lack of precedents,” the CBO wrote.

While this is good news, not everything the CBO stated in its latest report was positive. In fact, according to The Hill, the report claims that the president’s “One Big, Beautiful Bill” is fueling economic inequality, a claim that Vice President JD Vance ripped to shreds.

“First of all, the Congressional Budget Office, sometimes they put out reports that are absolutely atrocious, and I think this is a good example of a very atrocious report,” he remarked during an address, leading to loud applause from the audience.

“The CBO report, which was done at the request of Democrats, found that the top 10 percent of earners in the country will see an average boost of $13,600 per year over the next decade as a direct result of provisions in the law, while the bottom 10 percent will see an average annual decrease of $1,200,” The Hill said.

“The most important thing for people who are living at the bottom of the income ladder is that they not pay taxes on their income sources,” the vice president added.

He then said, “So, if you’re working hard and you’re working overtime, you’re going to get a big fat tax cut. If you’re working at a restaurant or some other business where you’re earning your wages primarily through tips, you’re going to get a big fat tax cut. And most importantly, the president’s economic policies are going to prevent your job from being shipped off to Asia or to Mexico. That is the very best thing for people at the bottom of the income ladder.”