'No chance': Economist scoffs at CBO's eyebrow-raising new Trump tariff projection

A prominent economist criticized estimates released on Monday that projected President Donald Trump's tariff policies could reduce the federal deficit by trillions over the next decade.

Justin Wolfers, economics professor at the University of Michigan, joined CNN's Jake Tapper on "The Lead" to discuss estimates from the Congressional Budget Office showing Trump's tariffs could reduce the federal deficit by $4 trillion over 10 years. As of Aug. 25, the U.S. national debt exceeds $37 trillion, according to the Treasury Department.

"What are the chances the tariffs last through 2035, which the CBO based its estimates on?" Tapper asked Wolfers.

"Close to no chance, and that's one of the biggest problems," Wolfers replied. "The whole idea of tariffs is that you provide an incentive for people to set up shop, but the tariffs are going to change before the shop gets set up."

"As a result, I'm not sure we're going to get much out of this," he added.

Trump has increased tariffs against U.S. trading partners like the European Union, South Korea, and Japan. He's also claimed that the tariff revenue will be paid by foreign countries, which Wolfers said is untrue.

Instead, Wolfers argued that the tariffs are really acting as an additional tax on American consumers.

"It's a tax, and when you charge people a tax, the government gets revenue," Wolfers said. "That's how it works."

Watch the entire clip below or by clicking here.