US announces Trump's tariff achievements: $4 trillion budget deficit reduction

On August 22, the US Congressional Budget Office (CBO) estimated that President Trump's increase in tariffs on foreign goods could help reduce the national budget deficit by $4,000 billion over the next decade.

US President Donald Trump at the White House on August 22 - Photo: REUTERS

According to the Financial Times and Vietnam News Agency, the CBO estimates that if US President Donald Trump's global tariff hikes this year are maintained, the additional revenue could help narrow the primary deficit by $3.3 trillion and reduce federal interest payments by $700 billion over the 10 years to 2035.

"As a result, the tariff changes would reduce the overall deficit by $4 trillion," CBO Director Phillip Swagel said.

The agency noted that current tariffs are subject to change due to ongoing negotiations with trading partners and international legal challenges.

However, additional tariff revenue could help offset a projected $3.4 trillion increase in the deficit due to the tax-cut and spending bill Republicans passed this year.

The US Treasury Department said the federal debt now stands at $37.18 trillion, continuing to rise under both Republican and Democratic administrations as Congress repeatedly allows the government to spend more than it takes in.

US lawmakers are facing a deadline to pass spending bills before the end of September to avoid a government shutdown.

The CBO's latest forecast is higher than its June report, when the agency estimated a $2.5 trillion reduction in the primary deficit and a $500 billion reduction in borrowing costs.

The average US import tariff across countries and products was 16.7% in August, up from 15.1% in June, according to economic consultancy Oxford Economics.

U.S. Customs and Border Protection collected more than $26 billion in duties this fiscal year, up from several hundred million dollars the year before.

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Source: https://tuoitre.vn/my-cong-bo-thanh-qua-thue-quan-cua-ong-trump-giam-tham-hut-ngan-sach-4-000-ti-usd-20250823180336206.htm