CBO: Tariff Changes to Add $1.1 Trillion to US Budget Deficit

New York (ANTARA) - The latest US tariff adjustments could add $1.1 trillion to the federal budget deficit over a 10-year period, according to Phillip Swagel, Director of the Congressional Budget Office (CBO). (1 US dollar = Rp17,321)

The US Supreme Court’s recent decision to overturn President Donald Trump’s ability to impose tariffs solely under the International Emergency Economic Powers Act (IEEPA) would alone increase the deficit by $2 trillion over a decade, Swagel said in a Bloomberg interview on Monday (27/4).

The Trump administration’s steps to replace IEEPA tariffs with other trade measures would add between $800 billion and $900 billion, or nearly half of the lost revenue from the ruling, Swagel revealed.

“The 10-year deficit will be about $1.1 trillion higher due to the impact of the Supreme Court eliminating some tariffs and the government reimposing some tariffs,” he stated.

It is difficult to determine the exact deficit figure until the process is complete, as the federal government has considerable authority to impose new tariffs and adjust them, Swagel said.

The impact on energy prices from the war against Iran offsets the boost to the economy from tax cuts implemented in 2025, he added.

The US posted a federal budget deficit of $1.16 trillion in the first half of fiscal year 2026, which began on 1 October 2025, and total outstanding public debt reached $38.95 trillion as of Friday (24/4), according to data released by the US government.