President Donald Trump’s sweeping tariff plan would cut deficits by $2.8 trillion over a 10-year period while shrinking the economy, raising the inflation rate and reducing the purchasing power of households overall.

The CBO analysis says Trump's tariffs over the next decade would reduce deficits by $2.8 trillion while also curbing economic growth by 0.6 percent.

The Congressional Budget Office projected President Trump's tariffs could raise trillions of dollars over the next decade — but they could also lead to higher inflation and slower economic growth.