How Trump's tariff defeat threatens to make the debt crisis even worse
Fortune • • general
Key Points:
- The Congressional Budget Office's new 10-year budget forecast shows a significantly worse outlook than last year, with tax cuts and spending increases from the One Big Beautiful Bill (OBBB) substantially widening deficits despite some offset from tariffs and a temporary GDP boost.
- Exploding interest expenses on the national debt are a major concern, with borrowing costs expected to consume a growing share of federal resources, reaching nearly half the size of a typical U.S. household mortgage payment within a decade.
- The OBBB, which includes various tax breaks and increased spending on defense and homeland security, is projected to raise deficits by $3.4 trillion through 2035, with total costs including immigration-related growth effects and interest hitting $4.1 trillion.
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