CBO: Trump tariffs would lower deficits but raise prices, drop GDP

President-elect Trump’s plan to impose 10 percent tariffs on all imports as well as a 60 percent rate on Chinese goods could lead to a nearly $3 trillion reduction in the budget deficit while shrinking the U.S. economy and raising U.S. goods prices, disproportionately impacting lower-income individuals, according to the Congressional Budget Office. CBO on Wednesday responded to a request from Senate Majority Leader Chuck Schumer (D-NY), Finance Committee Chair Ron Wyden (D-OR) and Budget Committee Chair Sheldon Whitehouse (D-RI)...