US President Donald Trump
Donald Trump has become the President of America ever since. Since then, recipes have been imposed on countries around the world, which is also getting a lot of money in the US treasury, on which the Congress United Budget office on Friday has estimated that the tariffs on American imports from foreign countries can reduce the national deficit by $ 4 trillion in the next decade.
The CBO said that if Trump’s global tariff continues to increase, the increase in revenue may reduce the primary deficit by $ 3.3 trillion in the next decade and reduce federal interest payment by $ 0.7 trillion. The current highest tariff rates may not last long, as interactions with business partners and international legal problems are going on. However, the additional money coming from these tariffs can help reduce the deficit incurred by the tax cut and expenses passed by the Republican this year. CBO estimates that this deficit may increase by $ 3.4 trillion in the next 10 years.
Losses will be less than tariff
According to the Finance Department, the US government debt is 37.18 trillion dollars. This debt continued to grow during both Republican and Democrats governments, because the Congress kept allowing the government to spend more than its earnings. The MPs have a deadline for government funding by the end of September, otherwise the government may be closed if the bill is not passed. The latest CBO estimate is higher than June, when it estimated a $ 2.5 trillion primary deficit and a decrease in $ 500 billion. According to Oxford Economics, the US tariff rates in August were 16.7% on average, 15.1% in June. The analysis states that in this financial year, American Customs and Border Protection deposited more than $ 26 billion tariffs, which is much higher than last year.