President Donald Trump said Sunday that his tariff policy will substantially reduce, even completely eliminate, income taxes for some American workers.
“When Tariffs cut in, many people’s Income Taxes will be substantially reduced, maybe even completely eliminated,” Trump wrote in a 6:06 a.m. post on Truth Social. “Focus will be on people making less than $200,000 a year.”
Trump continued, “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!!!
Trump has promoted an “external revenue service” before but may be citing the attractive idea again in the face of continuing criticism by detractors that he has launched a destructive “trade war” that has rattled the U.S. stock market and will result in higher prices for consumers.
On April 2, Trump imposed a series of tariffs on nations around the world including a 10 percent tariff on virtually everything coming into the United States. The tariff on India was set at 26 percent, while China has taken the biggest hit with 145 percent levies.
Since, however, the administration has walked back some of the policy. It has put a 90-day pause on reciprocal tariffs, launched negotiations with dozens of countries looking for new trade deals, and focused much of its tariff fire on China.
In recent weeks Wall Street seems to be hanging on every word by Trump and Treasury Secretary Scott Bessent as the Dow average fluctuates.
The tariff policies have also rattled the U.S. bond market, which finances the nation’s debt. Some observers have said this prompted Trump to dial back some of the policy.