The International Monetary Fund (IMF) is projecting that US tariffs imposed by President Donald Trump will contribute to lowering the federal deficit in 2025.
In a report released Wednesday, the IMF forecasted that the overall federal deficit will fall to 6.5 percent of gross domestic product next year, down from 7.3 percent in 2024. The report attributed the decrease in the gap between spending and revenue to "higher tariff revenues.”
The forecast is based on the IMF’s “reference point” projections, which include tariff announcements made as of April 4. That includes the reciprocal tariffs announced on April 2 but excludes later developments, such as the Trump administration’s 90-day pause and exemptions on products like smartphones, semiconductors, and other technology-related goods, a report by CNBC noted.
