The US Congressional Budget Office (CBO) has estimated that the US deficit could be reduced by $4 trillion over the next decade thanks to Donald Trump's tax policies. According to this estimate, even if the deficit increases due to the president's tax cuts, a large part of it will be covered by tax revenue.

The CBO said on Friday that the additional tariffs would reduce the US primary deficit by $3.3 trillion by 2035. In addition, interest payments would be reduced by another $700 billion, or $700 billion, for a total deficit reduction of $4 trillion. Financial Times

This figure is one-third higher than previously thought. Based on the tariff policies announced from January to May, previous forecasts said the deficit could be reduced by three trillion or three hundred million dollars.

After this report, US President Donald Trump said, "This event proves that I was right. The deficit will be reduced much more than we thought, thanks to tax revenue, it has never been seen before."

The president's pet law, the One Big Beautiful Bill Act, will increase the US government debt by $4.1 trillion in the future. The latest estimates suggest that the impact of that debt will be mitigated somewhat by tax revenues.