Trump proposes tariffs as path to abolishing income tax

US President Donald Trump has suggested that imposing tariffs on imported goods could eventually allow the US to completely eliminate income tax.

Trump made these remarks during a meeting with Republican governors, Caliber.Az reports via Russian media.

The president argued that tariffs could become a sufficient source of revenue, suggesting that the country could completely eliminate the income tax and possibly even do away with the income tax system altogether once the plan was fully implemented.

He emphasised that tariffs were historically a major revenue source for the US. He referenced the period between 1870 and 1913, when the nation was considered “the wealthiest in the world” due to its tariff policies. 

This proposal highlights Trump's ongoing focus on trade and fiscal policy, suggesting a potential shift in how the US could approach taxation and economic strategy in the future. On February 15, Trump announced that he had imposed import tariffs on China totaling $600 billion, a sum larger than any previous tariffs during the periods of the US ex-presidents. 

The announcement came after China’s Ministry of Commerce condemned Washington’s actions as a typical example of unilateralism and protectionism. In January, the new US president also introduced new tariffs on goods from Mexico, Canada, and China. Specifically, tariffs on goods from Mexico and Canada will be set at 25 per cent, while products from China will face a 10 per cent tariff.

By Naila Huseynova