New CBO Analysis Exposes Devastating Impact of Trump’s Tariffs

WASHINGTON, DC – Congressman Brendan F. Boyle (PA-02), Ranking Member of the House Budget Committee, issued the following statement on the Congressional Budget Office’s (CBO) analysis of Donald Trump’s proposed tariffs: 

"The nonpartisan CBO has confirmed our worst fears: Donald Trump’s reckless tariff scheme will hurt working families, weaken economic growth, and drive up prices. Despite Trump’s lies, this report makes it clear that it’s the American people—not foreign governments—who will bear the cost of these tariffs, which are new taxes on consumers.

And even as they raise prices on American families, Republicans are doubling down on policies that give handouts to billionaires and big corporations. While Democrats are fighting to bring down costs for working families—on essentials like groceries, health care, and energy—Trump continues to lie about his intentions and pursue policies that only benefit billionaires and corporate elites.

CBO’s analysis is a wake-up call: we need policies that lift up the middle class—not Trump’s plans for higher prices, slower growth, and more giveaways to billionaires.” 

Background on CBO’s Analysis:

• CBO examined the effects of permanently increasing tariffs by 10 percent on imports from all countries and by 60 percent on imports from China. The combined effect of these policies would be a 0.6 percent decrease in real GDP in 2034 and a 1 percent increase in prices in 2026. 
• This report shows that any “static” analysis of Trump’s tariffs does not tell the entire story, as it does not include real-world consequences—like retaliation, higher prices, and weaker growth. Accounting for these consequences shows less revenue raised that under a static estimate. 
• CBO found that this kind of tariff increase would make U.S. goods more expensive, add uncertainty for businesses, reduce productivity, and prompt retaliatory tariffs. 

The full report from the Congressional Budget Office can be found here.

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