The non-partisan Congressional Budget Office estimated that if President Donald Trump's tariff hikes on imports from abroad are sustained through 2035, they will lower U.S. deficits by $3 trillion, revising the $4 trillion forecast made in August.

The CBO formulated its most recent estimate based on tariffs set by Trump from January 6 to November 15. It stated that primary deficits would decrease by $2.5 trillion over 11 years, leading to a reduction in government borrowing costs of about $500 billion. The estimate for August was $3.3 trillion and $700 billion, respectively.

The update was primarily driven by new information, with the rest coming from the recent alterations in tariff policies by the Trump administration.

Certain federal courts have determined that the administration exceeded its authority in implementing the tariffs, since the U.S. Constitution assigns Congress power over trade policy. The decisions are currently under review by the U.S. Supreme Court.

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Trump has claimed that the tariffs have generated a windfall for the U.S. Treasury, whereas critics contend that the increased costs of imported goods are transferred to consumers as higher prices on items when they arrive on American shelves.

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President Donald Trump has further reduced tariffs on Brazil in his attempt to decrease consumer expenses for Americans. The ruling, announced on Thursday (November 20, 2025), impacts coffee, beef, fruit, and various other products.

Nonetheless, Brazil stated that it did not influence the tariffs that Mr. Trump implemented in July to penalize the nation for pursuing his political associate, former President Jair Bolsonaro.

 

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Thursday's decision aligns with Mr. Trump's plans, guaranteeing that the April and July tariffs do not affect specific products.

Mr. Trump and Brazilian President Luiz Inacio Lula da Silva have been discussing trade, which may lead to additional tariff reductions.