President Donald Trump’s sweeping tariff plan would cut deficits by $2.8 trillion over a 10-year period while shrinking the economy, raising the inflation rate and reducing the purchasing power of households overall.

The CBO analysis says Trump's tariffs over the next decade would reduce deficits by $2.8 trillion while also curbing economic growth by 0.6 percent.

Nonpartisan Congressional Budget Office estimates that Trump’s tariffs would shrink the economy and add to inflation while reducing the federal deficit by $2.8 trillion.