President Trump’s tariffs will take a major bite out of U.S. deficit levels, reducing them by $2.5 trillion over the next decade and shrinking the size of the U.S. economy, the Congressional Budget Office (CBO) found in a Wednesday analysis.

The deficit reduction is almost exactly the same size as the deficit addition that would result from the GOP’s “big, beautiful bill.” The CBO found that the bill would add $2.4 trillion to deficits through 2034, according to a separate analysis released Wednesday.

The tariffs measured by the CBO are those implemented from Jan. 6 to May 13, which includes the trade truce with China announced May 12.

The CBO included in its calculation a menu of tariffs that Trump has announced since taking office: a 30 percent tariff on imports from China and Hong Ko

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