U.S. President Donald Trump said on Sunday that the broad tariffs he imposed could help him reduce income taxes for individuals earning less than $200,000 annually, amid rising public concern about his economic agenda.
Trump had previously argued that the revenue from tariffs 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 those 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 that the Trump administration has not focused enough on reducing 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 gratuity exemptions for workers and social security earnings — while lowering the corporate tax rate to 15% instead of 21%.
Treasury Secretary Scott Beisent's response to the poll results on Sunday stated that American consumers are still spending, and that the administration is working on making 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.
Beisent stated on ABC's “This Week” that the efforts involve 17 major trading partners, excluding China.
He added: “We have an ongoing process over the next ninety days to negotiate with them,” referring to the fact that “some of those negotiations are going very well, especially with Asian countries.”
Beisent reiterated the administration's argument that Beijing will be forced back to the negotiation table because China cannot bear the level of the recent 145% U.S. tariffs on Chinese goods.#SaylorBTCPurchase #xrpetf #BinanceAlphaPoints #BTCvsMarkets $RARE
