On Sunday, U.S. President Donald Trump said that the broad tariffs he imposed could help him lower income taxes for individuals earning less than $200,000 a year, amid rising public concern about his economic agenda.
Trump had previously argued that tariff revenues could replace income taxes, although economists have questioned these claims, according to Bloomberg.
Trump said on Sunday on his social network "Truth Social": "When the tariffs go into effect, income taxes for many people will be significantly reduced, and may even be completely eliminated. The focus will shift to individuals earning less than $200,000 a year."
In just a few weeks, the tariffs imposed by Trump have disrupted the global economy, raised concerns about rising prices for Americans, and sparked warnings that his policies could lead to an economic recession.
A poll conducted by CBS News and published on Sunday showed that 69% of Americans believe the Trump administration has not focused enough on lowering prices. The approval rating for Trump's handling of the economy in the poll dropped to 42% from 51% in early March.
Trump wants to extend the income tax cuts that were enacted in 2017 during his first presidential term, which are set to expire by the end of 2025. He has also proposed expanding tax exemptions—including exemptions for worker tips and Social Security earnings—while lowering the corporate tax rate to 15% instead of 21%.
Treasury Secretary Scott Pisent responded to the survey results on Sunday, stating that American consumers are still spending, and that the administration is working on concluding bilateral trade agreements after Trump imposed what are called reciprocal tariffs on many countries in early April. He later froze these tariffs for 90 days for all affected countries except China.
Pisent said on the ABC network's "This Week" that efforts involve 17 key trading partners, excluding China.
He added: "We have an ongoing process over the next ninety days to negotiate with them," pointing out that "some of those negotiations are going very well, especially with Asian countries."
Pisent reiterated the administration's argument that Beijing will be forced back to the negotiating table because China cannot bear the recent U.S. tariff level of 145% on Chinese goods.