The $2.8 trillion figure is after accounting for how the tariff agenda would reduce the size of the U.S. economy, according to the CBO.

The Congressional Budget Office delivered a double shot of projections for the fiscal outlook Wednesday, finding that the Trump administration's signature tax bill would widen deficits, while tariffs would narrow the fiscal gap.

The CBO analysis says Trump's tariffs over the next decade would reduce deficits by $2.8 trillion while also curbing economic growth by 0.6 percent.

The twists and turns in U.S. President Donald Trump's tariff policies have not only rattled global financial markets but have also taken investors on a roller-coaster ride. Companies are counting the cost of the trade war that is now being estimated at more than $34 billion in lost sales and higher expenses,

US states and small businesses that won a ruling that most of President Donald Trump’s global tariffs are illegal want them blocked during the administration’s appeal, saying they’re suffering immediate harm from economic uncertainty around the levies.

The Trump administration is pressuring trade partners to make a deal as tariff threats loom. The U.S. trade representative's office recently sent letters to foreign countries telling them to make their best trade offers by Wednesday.