Trump proposed replacing income tax with tariff revenue, economists question feasibility. Recently, U.S. President Trump suggested that the revenue from his 'Liberation Day Tariff' plan could be sufficient to replace federal income tax. In an interview with Fox News on Tuesday, he stated, 'If the tariff revenue is substantial enough, we can emulate the Gilded Age (1870-1913) when tariffs were the sole source of government revenue, and America was in its prime.' This month, Trump imposed 'reciprocal tariffs' on nearly 90 countries, citing 'trade injustice,' causing global market turmoil. He then announced a 90-day buffer period and set the tax rate benchmark at 10%, excluding a few countries like China. When asked if tariffs could replace income tax, Trump praised the question as 'insightful' and referred to himself as the 'Tariff Man.' He indicated that the new policy is expected to generate over a trillion dollars within the next year to reduce national debt and replace federal income tax. However, economists expressed strong doubt about this. Data shows that over the past 70 years, tariff revenue has only accounted for 2% of federal revenue, and this percentage is projected to drop to 1.7% in 2024. Analysts at ING pointed out that while broad tariffs on China may benefit the U.S. economy in the long term, they will cause 'significant economic damage' in the short term. Furthermore, if tariffs are reduced through future trade agreements, the government's capacity for tax cuts will be further constrained.