Trump Floats New Income Tax Cut in Bid to Ease Tariffs Bite#TrumpTaxCut
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Trump Floats New Income Tax Cut in Bid to Ease Tariffs Bite

President Donald Trump
Photographer: Al Drago/Bloomberg
By Catherine Lucey
April 27, 2025 at 8:57 PM GMT+5:30
Updated on
April 28, 2025 at 4:02 AM GMT+5:30
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President Trump suggests that his tariffs will help reduce income taxes for people making less than $200,000 a year.
Summary by Bloomberg AI
Trump's administration is working on bilateral trade deals with 17 key trading partners, excluding China, and is pushing for a trade deal with China, which Beijing has denied.
Summary by Bloomberg AI
Trump wants to extend and expand tax breaks, including exempting workers' tips and social security earnings, and slashing the corporate tax rate to 15% from 21%.
Summary by Bloomberg AI
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President Donald Trump suggested Sunday that his sweeping tariffs would help him reduce income taxes for people making less than $200,000 a year, as public anxiety rises over his economic agenda.
Trump has previously argued that tariff revenue could replace income taxes, though economists have questioned those claims.
“When Tariffs cut in, many people’s Income Taxes will be substantially reduced, maybe even completely eliminated. Focus will be on people making less than $200,000 a year,” he said Sunday on his Truth Social network.
Trump’s tariff stances have roiled markets, led to fears of higher prices for Americans, prompted recession warnings and sparked bouts of concern about the US’s haven status — a fear that Treasury Secretary Scott Bessent questioned in a Sunday interview.