US Congress budget office sees economic output falling from Trump tariffs

ReutersJun 4, 2025 3:43 PM

WASHINGTON, June 4 (Reuters) - U.S. economic output will fall as a result of President Donald Trump's new tariffs on foreign goods that were in place as of May 13, while also reducing federal budget deficits by $2.8 trillion over a decade, the non-partisan Congressional Budget Office said on Wednesday.

In a letter to Senate Democratic Leader Chuck Schumer and two other high-ranking Democrats, the CBO said the tariffs, which have been challenged in court cases, will raise the costs of consumer and capital goods.

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