President Donald Trump is taking a victory lap after the Congressional Budget Office announced tariffs will help reduce the deficit.
“Shockingly, the Democrat controlled CBO just announced that the tariffs will be reducing the deficit by at least $2.8 trillion dollars,” Trump wrote on his Truth Social account Thursday. “Too bad this information couldn’t have been released earlier, it would have kept people from knowingly saying untruths.”
The CBO’s analysis said Trump’s tariffs would shrink the economy, raise the inflation rate, and reduce the purchasing power of households overall. In its analysis, the CBO predicted that households would ultimately buy less from the countries hit with added tariffs.
The CBO revealed its analysis in a letter sent to Senate Democrats Wednesday.
Information from the Associated Press was used in this report.
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