#TrumptaxCuts

U.S. President Donald Trump suggested on April 27 that his large-scale tariffs could help reduce income taxes for those earning under $200,000 a year, amid growing public concern about his economic program.

Earlier, Trump had argued that revenue from tariffs could replace income tax, although economists have questioned this claim.

"When tariffs take effect, the income tax of many people will decrease significantly, and could even be completely eliminated. The focus will be on those earning under $200,000 a year," Trump wrote on the social media platform Truth Social.

Trump wants to extend the income tax cuts approved in 2017 during his first term, provisions that are set to expire at the end of 2025.

He also proposed expanding tax incentives, including tax exemptions for tips and social security income, while cutting the corporate income tax from 21% to 15%.

Trump's tariff moves have shaken financial markets, raising concerns about rising prices in the U.S., warnings of economic recession, and worries about the U.S.'s status as a "safe haven," which Treasury Secretary Scott Bessent dismissed in an interview on April 27.