Core Insights - The U.S. Congressional Budget Office (CBO) estimates that tariffs imposed by Trump on foreign goods could reduce the budget deficit by $2.8 trillion over the next decade [1] - However, the CBO also indicates that Trump's tariff policy will lead to a decline in U.S. economic output [1] Economic Impact - The projected reduction in the budget deficit of $2.8 trillion highlights the potential fiscal benefits of the tariff policy [1] - The anticipated decrease in economic output suggests that while the tariffs may improve budgetary figures, they could negatively affect overall economic performance [1]