Report: Trump's tariff plan will increase the average annual inflation rate in the United States by 0.4% and cause a permanent d

币界网报道:According to the Coinnet news, on June 5, the Congressional Budget Office (CBO) released an analysis report on Wednesday showing that the Trump administration's massive global tariff plan will cut the federal deficit by $2.8 trillion over the next 10 years, but at the same time will lead to slower economic growth, higher inflation, and an overall weakening of the purchasing power of American families. The letter sent to the Democratic congressional leadership details the impact of the Trump administration's administrative measures to impose broad tariffs on many countries on ordinary families. The report pointed out that the CBO's model assumes that American families will eventually reduce imports from tariffed countries and predicts that tariffs will increase the average annual inflation rate by 0.4 percentage points from 2025 to 2026. The analysis also assumes that the tariff policy announced by the Trump administration through executive orders between January and May will be implemented for a long time. Although the federal court previously ruled that its invocation of emergency powers to impose tariffs was overstepping its authority, the appeals court allowed the relevant tariffs to continue to be levied during the litigation. The CBO's conclusion is consistent with other economic model predictions: the 10-year $2.8 trillion deficit reduction will come at the expense of shrinking household wealth and shrinking the total economy. The report estimates that tariffs will cause the annual growth rate of US real GDP to permanently decline by 0.06 percentage points. The April report of the Wharton School of the University of Pennsylvania's budget model was more pessimistic, predicting that such tariffs could shrink GDP by 6% in the long term and reduce wages by 5%. It is worth noting that the CBO specifically emphasized in the report that there are significant uncertainties in its calculations, one of the reasons being that "the Trump administration may adjust the implementation of tariff policies at any time."

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