In his annual State of the Union address to Congress on Wednesday, U.S. President Donald Trump vigorously defended his controversial tariff policy and suggested that revenue from tariffs could one day supplant the federal income tax. Speaking from the House chamber in Washington, Trump described recent duties on imported goods as a cornerstone of his economic strategy and claimed they had brought in “hundreds of billions” of dollars while easing the tax burden on American workers and families.
Trump also criticised a recent U.S. Supreme Court ruling that struck down large portions of his sweeping tariff regime, calling the decision “very unfortunate” and asserting that existing trade agreements would continue to benefit the United States. In a bid to maintain the levies, he has ordered new tariffs under alternate legal authority and defended them as essential to national prosperity and protecting American industries.
The president’s claim that tariff revenue could replace the modern income tax system drew applause from supporters in the chamber, but many economists have noted that customs duties historically generate a fraction of what income taxes provide to the federal budget. News as reported.
