News for hackers. Stuff that matters.

A comment on US Administration announces 34% tariffs on China – 20% on EU. Parent comment

Re:US Administration announces 34% tariffs on China – 20% on EU by izend on Thursday April 03, 2025 @12:56PM (#43572461)
In CBO’s projections, the federal budget deficit in fiscal year 2025 is $1.9 trillion. Adjusted to exclude the effects of shifts in the timing of certain payments, the deficit grows to $2.7 trillion by 2035. It amounts to 6.2 percent of gross domestic product (GDP) in 2025 and drops to 5.2 percent by 2027 as revenues increase faster than outlays

https://www.cbo.gov/publication/60870

IMO, 5%+ percent of gross domestic product (GDP) in a country with massive trade deficits is not sustainable.

[ Parent | on HN ]
Re:US Administration announces 34% tariffs on China – 20% on EU by ojbyrne on Thursday April 03, 2025 @03:27PM (#43574253)
"The budget projections are based on CBO’s economic forecast, which reflects developments in the economy as of December 4, 2024. They also incorporate legislation enacted through January 6, 2025."

Out of date!

[ Parent | on HN ]
Re:US Administration announces 34% tariffs on China – 20% on EU by croemer on Thursday April 03, 2025 @01:07PM (#43572601)
Nominal GDP growth was 5% in December. As long as share of GDP is constant things are sustainable.
[ Parent | on HN ]
Re:US Administration announces 34% tariffs on China – 20% on EU by kogus on Friday April 04, 2025 @12:31PM (#43584747)
Debt as a % of GDP is not constant, and is on track to grow "far beyond any previously recorded level", according to the Budget Office. [1]

[1]https://www.cbo.gov/publication/61187

[ Parent | on HN ]