The head of the Congressional Budget Office warned lawmakers that proposed changes to U.S. tariff policy could increase the federal deficit by $1.1 trillion, according to testimony delivered to Congress.

The CBO chief's remarks come as policymakers debate various trade policy adjustments that could affect government revenue streams. Tariff modifications have become a significant point of discussion in Washington as officials weigh the fiscal implications of different trade approaches.

The $1.1 trillion figure represents the agency's analysis of how certain tariff changes could impact federal finances over the standard budget projection period. The Congressional Budget Office regularly provides nonpartisan analysis of proposed policy changes to help lawmakers understand potential fiscal consequences.

Market observers have noted that trade policy uncertainty could affect investor sentiment and market performance. Financial analysts are monitoring how potential policy changes might influence various economic sectors and overall market stability.

The testimony highlights the complex relationship between trade policy and federal budget dynamics, as tariff adjustments can have far-reaching effects on government revenue, consumer prices, and economic activity. Congressional leaders will likely consider these projections as they evaluate future trade policy decisions.