The Congressional Budget Office said on Friday that President Donald Trump’s tariff increases, if left in place through 2035, would shrink total federal deficits by about $4 trillion. The non-partisan agency estimates the levies would trim primary deficits by $3.3 trillion and reduce interest costs on federal borrowing by a further $700 billion over the period. The new projection marks a sharp jump from the CBO’s June outlook, which put the 10-year deficit relief closer to $3 trillion. Customs-duty receipts are now expected to reach roughly $200 billion in the current fiscal year as the average effective tariff rate across products and countries rises to 16.7% from 15.1% two months earlier. CBO analysts cautioned that the forecast assumes no policy reversals and acknowledged unresolved trade negotiations and court challenges could change the outcome. Even with the additional revenue, federal debt stands at $37.18 trillion, and lawmakers face a late-September deadline to pass spending bills or risk a government shutdown. Still, the updated figures suggest tariff income could offset some of the deficit pressure created by this year’s tax-cut and spending package.