Effects of Illustrative Policies That Would Increase Tariffs
Report
CBO provides a preliminary assessment of the budgetary, economic, and distributional effects of three policies that would raise tariff rates on goods imported into the United States.
Leader Schumer, Chairman Whitehouse, and Chairman Wyden asked about the budgetary, economic, and distributional effects of policies that would raise tariff rates on goods imported into the United States. Specifically, they asked CBO to estimate the effects of permanently increasing the existing rates of duty on imports from all countries by the equivalent of 10 percent of the value of goods and the effects of permanently increasing the existing rates of duty on imports from China by 60 percent of the value of goods. They also asked CBO to estimate the effects of combining those two policies—a 60 percent tariff on imports from China and a 10 percent tariff on imports from the rest of the world. In each case, the increased tariffs would apply to all goods imported after December 31, 2024, including imports that are currently subject to a zero percent duty rate and imports from partners in current trade agreements.
CBO provides a preliminary assessment of the effects of higher tariffs under those policies.
