A recent report from the Congressional Budget Office (CBO) suggests that Trump’s tariffs could lead to a significant reduction in the U.S. deficit, potentially by $2.8 trillion over the next decade. However, the report cautions that these tariffs might also result in a contraction of the economy and an increase in inflation. While the projected decrease in the deficit is substantial, the anticipated economic slowdown raises concerns about long-term economic growth. The CBO has noted that the tariffs, although they could lower deficits, may not produce the desired economic results, highlighting the complexities and potential downsides of such trade policies. The interplay between tariff implementation and overall economic health remains a critical area of discussion as global markets respond to the evolving situation.