U.S. President Donald Trump said on Sunday that the extensive tariffs he imposed could help him reduce income taxes for individuals earning less than $200,000 annually, amid growing 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 tariffs go into effect, income taxes for many people will be significantly reduced, and may even be eliminated altogether. The focus will shift to individuals earning less than $200,000 annually.'
In just a few weeks, the tariffs imposed by Trump have disrupted the global economy, raised concerns about rising prices for Americans, and triggered 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 enacted in 2017 during his first presidential term, which are set to expire by the end of 2025. He also proposed expanding tax exemptions — including exemptions for worker tips and Social Security earnings — while reducing the corporate tax rate to 15% instead of 21%.
Treasury Secretary Scott Bicent responded to poll results on Sunday, stating that American consumers are still spending, and that the administration is working on 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.
Bicent said on the 'This Week' program on ABC that the efforts involve 17 major trading partners, excluding China.
He added: 'We have a process in place over the next 90 days to negotiate with them,' referring to 'some of those negotiations going very well, especially with Asian countries.'
Bicent reiterated the administration's argument that Beijing would be forced to return to the negotiation table because China cannot bear the recent 145% level of U.S. tariffs on Chinese goods.
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