Trump Tariffs Have Not Achieved Expected Results, Says US CBO

CBO Reports on Tariff Impact

The Congressional Budget Office said that former President Donald Trump's tariffs on imported goods have not worked as forecasted. The beginning projection stated that tariffs would reduce the trade deficit by $4 trillion; the latest forecast has changed to a likely reduction of $3 trillion.

Changes in Deficit and Government Spending

The CBO had gauged the effects of the tariffs from January to November. It said the primary deficit would be reduced by $2.5 trillion over 11 years. This would also lower government spending by $500 billion. Both figures are lower than the CBO estimates issued in August at $3.3 trillion and $700 billion, respectively. The change is a result of new data.

Tariff Strategy Under Trump

Since taking office, Trump had threatened tariffs without making a distinction between allies and adversaries. Using tariffs to expand U.S. exports, reduce the trade deficit, and shape trade agreements, Trump boasted that tariffs could prevent trade disputes at all between countries.

Support and Criticism

The Trump administration held that tariffs brought revenue unexpectedly to the U.S. Treasury, to which critics argued that higher import prices are hurting consumers.