U.S. Budget Deficit Set to Rise Again Amid Trump Tariffs and Tax Cuts

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Why This Matters

The U.S. federal budget deficit is expected to rise again due to Trump's tariffs and tax cuts, contradicting the initial goal of reducing the deficit to 3% of GDP by the end of his second term.

Market Impact

Market impact analysis based on bearish sentiment with 80% confidence.

Sentiment
Bearish
AI Confidence
80%
Time Horizon
Short Term

Article Context

Note: This is a brief excerpt for context. Click below to read the full article on the original source.

Last year, U.S. Treasury Secretary Scott Bessent set a target to cut the U.S. federal budget deficit to just 3% of GDP by the end of President Donald Trump’s second term. The deficit reduction was a key component of his "3-3-3" economic plan, with the other two being achieving 3% real GDP growth and increasing energy production by 3 million barrels a day by 2028. The plan relies on spending constraints, regulatory reforms, and tariff revenue to narrow the deficit. With Trump now completing the first year of his second term, energy and…

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Original article published by OilPrice.com on February 13, 2026.
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