President Donald Trump said that tariffs could lead to major income tax cuts — or even eliminate them altogether.
"When Tariffs cut in, many people’s Income Taxes will be substantially reduced, maybe even completely eliminated," he posted on Truth Social. "Focus will be on people making less than $200,000 a year," he added.
Trump also pointed to new jobs and factories being created across the country. "It will be a BONANZA FOR AMERICA!!! THE EXTERNAL REVENUE SERVICE IS HAPPENING!!!" he wrote.
The president addressed the topic again while speaking to reporters on Sunday. He said, "Eventually we'll be reducing taxes very substantially for the people of our country."
He credited the surge in tariff revenue for allowing him to propose such cuts. "The money is so great coming in from tariffs that I'll be able to reduce taxes … to a very large extent, and maybe almost completely," Trump said.
He even suggested that income taxes might be wiped out entirely. "It's possible we'll do a complete tax cut, because I think the tariffs will be enough to cut all of the income tax," he noted.
Trump emphasized that lower-income Americans would benefit first. He said the cuts would start "with people making less than $200,000 dollars a year."
The president, nearing his 100th day of his second term, is preparing for a rally in Michigan on Tuesday.