Tariffs Could Reduce Deficit by $4 Trillion Over Next Decade
Impact Score: 1.8
Timeline: N/A — projections based on maintaining current tariff stance over the next decade
Summary: The Congressional Budget Office projects that President Trump’s tariff policy may reduce the federal deficit by $4 trillion over ten years. Tariff revenue increases and reduced federal borrowing are expected to cut primary deficits by $3.3 trillion and interest spending by $700 billion. However, tariffs may pose risks including higher consumer prices, potential trade retaliation, and impacts on institutions reliant on imports. Vanderbilt University could face changes in procurement costs, funding, and international collaborations.
Key Actions: Vanderbilt should analyze tariff impacts on research and partnerships, monitor federal budget changes for funding opportunities, explore economic implications in academic programs, and support international student engagement strategies.
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