President Trump’s tariffs are projected by the Congressional Budget Office (CBO) to reduce the U.S. primary deficit by \$2.5 trillion through 2035 but also to shrink the economy and raise consumer costs. The tariffs, including 25% on most foreign vehicles and parts and 30% on goods from China, are expected to lower GDP by an average of 0.6% annually and increase consumer prices by 0.9% by 2026. Higher costs could deter business investment. The CBO report, requested by Senate Democrats, reflects tariffs as of May 13, 2024, excluding subsequent tariff increases and legal rulings.
WASHINGTON — President Donald Trump’s tariffs would decrease the deficit over the next decade but overall shrink the U.S. economy and raise costs for consumers, according to a Congressional Budget Office analysis released Wednesday.
Tariffs are paid to the U.S. government by domestic companies and purchasers who buy goods from abroad.
The nonpartisan CBO found that tariffs would reduce the nation’s primary deficit by $2.5 trillion from now until 2035, plus an additional $500 million saved from avoiding even more mounting interest payments on the U.S. debt.
But the office also found that tariffs would slow down the U.S. economy over the same time, in part by affecting behavior in the private sector.
For example, businesses may pull back from investment and growth when faced with higher costs. The CBO, the official financial scorekeeper for Congress, estimates that Trump’s tariffs, as they stand now, would lower the U.S. gross domestic product, or the total value of a country’s goods and services, on average by 0.6% per year through 2035.
In addition to increasing costs on supplies and other assets businesses use in production, the tariffs are expected to raise prices on consumer goods in the next couple years. The CBO projects the price index used to measure personal consumption will be 0.9% higher by the end of 2026.
While lower-income households spend a higher percentage of their income on consumer goods, the CBO projects that prices will increase the most on goods like home appliances and vehicles more likely to be purchased by higher earners.
The eight-page analysis only takes into account the effects of Trump’s tariffs as of May 13. These include the following taxes calculated on the value of imports: a baseline 10% on goods from most countries; a base of 30% on all goods from China and Hong Kong; 25% on most foreign vehicles and auto parts; 25% on steel and aluminum; and 25% on certain goods from Canada and Mexico.
The CBO released the figures in response to a request from U.S. Senate Democrats wanting to know the cost of the administration’s import taxes.
The report did not take into account any tariff changes after May 13, including Trump’s doubling to 50% the import taxes on steel and aluminum. The report also did not factor in changes that could result from a May 29 trade court decision striking down most of Trump’s tariffs — though an appeals court swiftly left them in place while the case plays out.
Virginia Mercury is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Virginia Mercury maintains editorial independence. Contact Editor Samantha Willis for questions: info@virginiamercury.com.
Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.
Political Bias Rating: Centrist
This content presents a factual and balanced analysis of the economic impact of President Donald Trump’s tariffs, drawing from a nonpartisan source, the Congressional Budget Office. It acknowledges both positive (reduction in deficit) and negative (economic slowdown, higher consumer prices) consequences without using charged language or taking a partisan stance. The presentation of information is neutral and focused on economic data, appealing to a general audience without evident political lean.
www.youtube.com – WTVR CBS 6 – 2025-06-14 11:47:32
SUMMARY: A flood watch remains in effect through tonight for much of the area, with potential for torrential downpours, especially north and west of Richmond. Storms today may produce rainfall rates up to 2–3 inches per hour and gusts near 40 mph. Scattered storms are likely mid-to-late afternoon and into the evening. Sunday, Father’s Day, will be muggy with highs near 80 in Richmond, cooler to the north and east. A marginal risk of strong storms exists south of I-64. Rain chances ease midweek as temps rise to the 90s. A front Thursday brings brief relief before heat returns next weekend.
We’re tracking more scattered storms for Saturday. Showers and storms will increase from mid-afternoon into the evening. Due to the muggy air, torrential downpours will occur, and localized flooding is possible. Some spots could pick up multiple inches of rainfall. A few storms could have some gusts in excess of 40 mph.
www.youtube.com – 13News Now – 2025-06-13 19:23:36
SUMMARY: Several area high schools competed in state semifinals across baseball, softball, and soccer. In Class 5 baseball, Cox edged Independence 2-1 with MJ Lemke closing the game, advancing to face Ocean Lakes in an all Beach District final. In softball, Great Bridge fell 1-0 to Mills Godwin despite strong pitching by Bailey Blevin. Gloucester, York, and Western Branch advanced to the finals. In boys’ Class 5 soccer, Hickory lost 2-0 to Lightridge, while Kellam beat Riverside to reach the finals. Northampton Boys and Kellam Girls won, but West Point Boys and Lafayette Girls were eliminated from title contention.
Several area high schools punched their ticket to the championship game that included the Cox Falcons baseball team.
www.thecentersquare.com – By Morgan Sweeney | The Center Square – (The Center Square – ) 2025-06-13 18:44:00
Washington, D.C., is preparing for a military parade on Flag Day and President Trump’s birthday, costing $25-$45 million. In response, the ‘No Kings’ Day of Defiance movement, backed by over 100 organizations, is organizing protests in more than 2,000 U.S. cities, including dozens near D.C., opposing Trump’s “authoritarian overreach” and defending democracy. While no protests are planned in D.C. itself, heightened security has been enforced, with the parade designated a National Special Security Event. President Trump warned that protests in the capital would face strong force. No Kings emphasizes nonviolence, aiming to de-escalate conflicts. The main event will be held in Philadelphia.
(The Center Square) – As Washington, D.C., gears up for an historic military parade coinciding with Flag Day and President Donald Trump’s birthday, with projected costs between $25 million and $45 million, thecapitalregion is also mobilizing a protest response.
There are dozens of locations in Northern Virginia and Maryland within an hour’s drive of Washington where protesters can gather as part of the official nationwide ‘No Kings’ Day of Defiance.
No Kings is a movement supported by more than 100 partner organizations opposing Trump’s “authoritarian overreach” and gathering in “[defense] of democracy.”
There are over 2,000 cities and towns hosting No Kings events Saturday, where in some cases local or state leaders will speak, and “millions” that have RSVP’d, according to event communications.
Some events in thecapital regionwere at capacity as of Friday evening. One event in Kingstowne, Va., was expecting 250 people, according to an email from an organizer.
The group is not holding a protest in the district itself, however.
“Real power isn’t staged in Washington. It rises up everywhere else,” its website reads. “Instead of allowing this birthday parade to be the center of gravity, we will make action everywhere else the story of America that day.”
However, the district is also in a state of heightened security, as the parade has been designated a National Special Security Event by the Department of Homeland Security. Extra security measures were installed throughout the week leading up to the event and some will be in place through the days immediately following the event, as well. The president also told reporters that any protests in D.C. during the parade would be met with “very big force.”
No Kings says it is committed to nonviolence.
“A core principle behind all No Kings events is a commitment to nonviolent action. We expect all participants to seek to de-escalate any potential confrontation with those who disagree with our values and to act lawfully at these events,” its website says.
Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.
Political Bias Rating: Centrist
This article presents information on both the planned military parade and the associated protests without adopting an overt ideological stance. It accurately reports the logistical and security aspects of the parade and describes the protest movement’s messaging and scale. While the article references phrases like “authoritarian overreach” and “defense of democracy,” these are clearly attributed to the protest organizers rather than the article itself. The tone remains factual and avoids emotionally charged or opinionated language. The article provides balanced coverage of actions from both the Trump administration and its critics, maintaining journalistic neutrality throughout.
