‘Tariffs Will Replace Income Tax. They Will Take the Burden Off Americans,’ Trump Said in Key Speech.
In his annual State of the Union address, President Donald Trump defended his wide-ranging tariffs on foreign countries. He said that nations that had taken advantage of the US for years are now paying billions of dollars. Trump also repeated his earlier promise that these tariffs would eventually replace the current income tax system.
“As time goes by, I believe that tariffs, paid for by foreign countries, will, like in the past, substantially replace the modern-day system of income tax, taking a great financial burden off the people that I love,” Trump said.
Trump argued that tariffs were a key factor in the US economic recovery. He said he used tariffs to bring in hundreds of billions of dollars and secure strong deals for the country, both economically and for national security. According to Trump, countries that had taken advantage of the US for decades are now paying large sums.
“ThHe added that both the US and the other countries are satisfied with the new deals. While those countries are not earning as much as before, the US is making more money. Trump also claimed there was no inflation and that the country experienced strong growth.rump further slammed the US Supreme Court’s ruling to strike down his earlier sweeping import duties, calling it “very unfortunate”.
“Just four days ago, an unfortunate ruling from the United States Supreme Court. It just came down. It came down. Very unfortunate ruling. But the good news is that almost all countries and corporations want to keep the deal that they already made – knowing that the legal power that I, as President, have to make a new deal could be far worse for them. And therefore, they will continue to work along the same successful path that we had negotiated before the Supreme Court’s unfortunate involvement,” he said.
Trump also repeated his “solved wars claim”, saying there was aTrump repeated his claim that the threat of tariffs helped resolve international conflicts.aving – it’s saving our country the kind of money we’re taking in – peace-protecting many of the wars I settled was because of the threat of tariffs. I wouldn’t have been able to settle them without – will remain in place under fully approved and tested alternative legal statutes. And they have been tested for a long time,” he said.
Trump added that the new legal measures are more complex but may be even better, leading to stronger solutions. He said that no action from Congress is needed because these measures are already tested and approved. He repeated his belief that tariffs will ease the financial burden on Americans.
Barely six months after he returned to the White House, Trump demolished the old global economic order and used the US’s enormous economic power to punish countries that won’t agree to one-sided trade deals and extract huge concessions from those that do. On April 2, the US President announced “reciprocal” taxes of up to 50 per cent on imports from countries with which the US ran trade deficits and 10 per cent “baseline” taxes on almost all other countries. He invoked a 1977 law to declare the trade deficit a national emergency that justified his sweeping import taxes.
After the announcement led to backlash, Trump suspended the reciprocal tariffs for 90 days to allow time for negotiations. Some countries agreed to his terms, while those that did not faced even higher tariffs.
However, US Supreme Court’s recent 6-3 ruling handed Trump a stinging loss on an issue crucial to his economic agenda. Furious about the defeat, Trump signed a new 15 percent tariff order on imports from around the world, hours after the top court setback. The new tariffs will be imposed under a law that limits them to 150 days and will take effect “almost immediately”.
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