The CBO projects that even with the projected drop in imports, the proposed tariff policy would cut deficits by $2.7 trillion over the next decade.

Furthermore, the CBO forecasts minimal effects on prices and GDP. According to their preliminary findings, the 10/60 tariff package would lead to only a one-time 1% increase in prices. Further, CBO said that “after 2026, the tariffs would not have additional significant effects on prices.” This is a dramatic contrast with many economists’ claims of larger price effects.

“The CBO summary of its forecast shows that claims of negative consequences of broad-based tariffs are grossly overblown,” said Jeff Ferry, Chief Economist at the Coalition for a Prosperous America (CPA).

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