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    Trump Says Tariffs Could Replace Income Tax In State Of The Union, Vows Relief For Americans

    2 hours ago

    In his annual State of the Union address, U.S. President Donald Trump mounted a vigorous defense of his sweeping tariff policy, portraying it as a cornerstone of America’s economic revival and a tool that compelled foreign nations to contribute billions to the U.S. Treasury.

    Reiterating a long-held position, Trump argued that tariffs could ultimately supplant the modern federal income tax system — an idea he has promoted since returning to office for his second term. He framed import duties as both a revenue engine and a strategic lever in trade and security negotiations.

    Trump’s Case For Tariffs

    Addressing lawmakers, Trump asserted that countries which had “took advantage of America for years” were now paying the price through tariffs. He claimed the policy had yielded “hundreds of billions of dollars” and helped secure advantageous agreements on trade and national security.

    According to the president, the tariff strategy fueled economic momentum without triggering inflationary pressures. He maintained that the United States was no longer being exploited in global commerce and that domestic industries had benefited from the shift, as per reports.

    Trump also took aim at the Supreme Court of the United States after it invalidated certain import duties imposed during his administration, describing the judgment as “very unfortunate.”

    Economic Debate Intensifies

    Despite the president’s assertions, economists and trade analysts continue to challenge the narrative surrounding tariffs. They note that import duties are typically paid by U.S. importers, who may pass the added costs on to consumers, rather than by foreign governments themselves. Fiscal comparisons also complicate the argument that tariffs could replace income taxes. Data cited by PolitiFact indicates that by December 2025, the federal government had collected approximately $257 billion in tariff revenue, including about $167 billion from duties introduced during Trump’s current term.

    By contrast, federal income tax receipts reached roughly $2.4 trillion in 2024 — more than fourteen times the amount generated through tariffs.

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