Previously, the White House has relied on annual tariff revenues of about $300 billion to support a series of policies, including issuing "tariff rebate checks" to the public and providing tax credits to businesses through the "Big and Beautiful Act." After the U.S. Supreme Court ruled that the tariffs imposed by Trump under the International Emergency Economic Powers Act were illegal, although the Trump team immediately imposed "Section 122" tariffs, the Treasury still experienced a certain funding gap. A report released by the Congressional Budget Office on March 5 began estimating the losses caused by this ruling to the Treasury. The report showed that, without considering factors of economic changes, the basic deficit in the United States over the next decade would be $1.6 trillion higher than the previous prediction. The decline in revenue also means an increased reliance on borrowing. The Congressional Budget Office estimated that interest expenses between 2026 and 2036 would increase by $400 billion compared to previous projections, while it was previously expected that net interest costs would exceed $210 billion annually by 2036. However, the positive side is that the temporary inflationary effects, reduced actual investment, lower real GDP levels, and job reduction caused by trade policy changes in 2025, as previously predicted, will be somewhat alleviated.
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Original: toutiao.com/article/1859157025888585/
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