The nonpartisan Congressional Budget Office estimates that President Donald Trump's tariffs would shrink the U.S. economy and add to inflation while reducing the federal deficit by $2.8 trillion.

In a published letter to Senate Democrats, the CBO estimated the budgetary and economic effects of tariff increases that were implemented through executive actions between Jan. 6 and May 13. The analysis was completed before court rulings on the tariffs and it does not paint the full picture of Trump's ever-changing tariff policy.

Separately, the CBO on Wednesday also released its analysis of the Republican megabill that would fund Trump's priorities for his second term that found it would increase the deficit.

President Donald Trump arrives to speak at U.S. Steel Corporation's Mon Valley Wor

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