No Income Tax in U.S.? President Trump Suggests Tariffs Could Replace It
President Trump says tariffs could generate enough revenue to eliminate income tax in the U.S
U.S. President Donald Trump has said that tariffs on imported goods could bring in so much money that the country might not need income tax anymore. Speaking in an interview with Fox Noticias, President Trump said the U.S. made a lot of money from tariffs in the past, especially between 1870 and 1913, before there was an income tax. A Tax Revolution? Decode the Income Tax Bill 2025...
U.S. President Donald Trump has said that tariffs on imported goods could bring in so much money that the country might not need income tax anymore.
Speaking in an interview with Fox Noticias, President Trump said the U.S. made a lot of money from tariffs in the past, especially between 1870 and 1913, before there was an income tax.
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“There is a chance the money is so great that it could replace income tax,” he said.
He explained that during that time, America was very rich, and the government even created a committee just to decide how to spend the extra money from tariffs. But in 1913, the country switched to using income taxes instead.
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President Trump said he wants to use money from tariffs to help with a new tax plan, which includes not taxing tips or Social Security. But he also admitted that Congress would have to approve any big changes to the tax system.
He said that during his presidency, the U.S. was making $2 to $3 billion a day from tariffs. Recently, he paused some tariffs for 90 days for trade talks, but he made it clear that tariffs will continue, just with some flexibility.
Right now, the U.S. has placed 245% tariffs on Chinese goods, as part of a trade dispute with China.
This idea of replacing income tax with tariffs would be a major change. Experts say it could increase prices for shoppers and cause problems with other countries, but President Trump believes it could help the U.S. make money without taxing people's income.
Following the latest tariff increase and 90-day pause period, more than 50 countries have contacted the U.S. to begin or restart trade talks in hopes of avoiding similar.
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Japan is in advanced talks and hopes for a mutually beneficial deal. The UK is negotiating to reduce tariffs on its car and medicine exports, though talks are complicated by issues like digital taxes
India, Canada, Mexico, and South Korea have also opened dialogue with the U.S.
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