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flag CBO projects Trump's tariffs could cut federal deficit by $2.8 trillion but may raise prices and slow growth.

flag The Congressional Budget Office (CBO) projects that President Trump's tariffs could reduce the federal deficit by $2.8 trillion over the next decade. flag However, the tariffs would likely lead to higher consumer prices, slower economic growth, and reduced purchasing power for households. flag The forecast assumes most tariffs are made permanent but does not account for all recent tariff changes, such as those on steel and aluminum. flag The CBO warns that there is limited historical data on the effects of such large tariffs.

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