Trump claims tariffs could replace income tax
The US president insists his trade policy could generate billions in revenue
US President Donald Trump © Getty Images / Kevin Dietsch / Staff
US President Donald Trump has suggested that revenue from his so-called “Liberation Day” tariffs could potentially replace the federal income tax.
This month, Trump announced “reciprocal” tariffs on nearly 90 countries, citing what he described as unfair trade practices. Following a sharp global market decline, he declared a 90-day pause on the duties, reducing them to a 10% baseline. China was one of the few exceptions, with tariffs on its goods raised even further.
Speaking to Fox News’ Rachel Campos-Duffy on Tuesday, Trump was asked whether his tariffs could eventually replace the income tax.
He praised the question, noting that the TV host was the only one who had ever posed it to him – despite frequently engaging with “top financial minds” who had never brought it up.
“There is a chance that the money from tariffs could be so great that it would replace – you know, in the old days, about 1870 to 1913, the tariffs were the only form of money,” Trump said, referring to the Gilded Age – a period of rapid industrial growth and rising national wealth, though marked by stark income inequality and widespread poverty.