The Supreme Court’s decision to strike down the bulk of President Donald Trump’s tariffs has created a consolation prize for an administration hell-bent on using tariff revenue to bolster the U.S. economy. While the loss of an estimated $300 billion per year in income from tariffs has disappeared, fewer tariffs mean U.S. consumers and firms can breathe a sigh of relief over some alleviated pricing and labor challenges.
A Congressional Budget Office (CBO) report published on Thursday estimated the termination of tariffs under the International Emergency Economic Powers Act (IEEPA) would grow the U.S. deficit by $2 trillion from 2026 to 2036 compared with baseline projections from when the tariffs were in place last year. That sum includes $1.6 trillion in primary deficits, as well as $400 billion in outlays for interest.
