Tag: us president

Trump Proposes Income Tax Elimination with New Tariffs

Americans may not have to pay income tax once tariffs come in: Trump: US President Donald Trump claimed that Americans’ income taxes will be substantially reduced or may even be completely eliminated once tariffs come in. “Focus will be on people making less than $200,000 a year. Also, massive numbers of jobs are already being created…It’ll be a bonanza for America,” Trump added. Notably, Trump has paused the reciprocal tariffs for 90 days.

US President Donald Trump in a new post has claimed that the imposition of tariffs will lead to a huge number of Americans seeing a decline in their income tax.

In a post on Saturday on his social media platform Truth Social, Donald Trump claimed that the tariffs will help reduce income tax for people, with the potential for being ‘completely eliminated’ for some.

The focus will be on those who earn less than $200,000 a year, he said.

“When Tariffs cut in, many people’s Income Taxes will be substantially reduced, maybe even completely eliminated. Focus will be on people making less than $200,000 a year,” Trump said in his post.

The US President further emphasised that a massive number of jobs are being created already as companies are building and planning more factories.

“Also, massive numbers of jobs are already being created, with new plants and factories currently being built or planned. It will be a BONANZA FOR AMERICA!!! THE EXTERNAL REVENUE SERVICE IS HAPPENING,” he said.

Donald Trump’s tariff claims

Donald Trump has time and again focussed on the benefits of the reciprocal tariffs that he and his administrations announced on April 2. According to him, the tariffs imposed on other countries will curb imports and make companies build their manufacturing facilities within the US, thereby creating thousands of new jobs and giving a boost to the economy.

Donald Trump on April 2 imposed a series of tariffs on nations across the world including a 10 per cent tariff on virtually everything coming into the United States. The tariff on India has been set as 26 per cent, while China has taken the biggest hit with 145 per cent levies.

Trump 2.0: Navigating the Impacts of Potential Tariffs on Global Markets

Global equity markets prepare for Trump 2.0, with investors anticipating increased tariffs under Donald Trump, the incoming 47th US President. His focus on higher tariffs raises concerns of a trade war with China, impacting S&P 500 companies significantly due to their reliance on imports. A projected 10% tariff could lower S&P 500 earnings by 3-5%, with Latin America, Europe (excluding the UK), and North Asia being most vulnerable. While US sectors like materials and autos may benefit, consumer sectors could face price impacts between -6% and -8%. In contrast, 95% of analysts believe Indian stocks will remain unaffected by such tariffs.

Financial institutions forecast a stable macroeconomic outlook despite uncertainties in Trump’s economic policies. The Federal Reserve is expected to maintain the federal funds target rate at 4.5% through 2025. The contradictions inherent in Trump’s agenda might lead to inflationary pressures, prompting concerns about tariffs and immigration policies.

Additionally, institutional investors are urged to consider cryptocurrency, particularly as the Trump administration appears supportive of Bitcoin’s mainstream adoption. Chinese exporters could encounter challenges due to tariff-related developments, while the return of Trump presents an opportunity for them to establish production in the US. Nomura predicts that tariffs will gradually be imposed throughout 2025, exerting upward inflationary pressure in the second quarter and beyond.