'Real Chance': Donald Trump Suggests US Tariffs Capable Of Replacing Income Tax

Last Updated:April 17, 2025, 07:16 IST

Trump hopes to use the tariff money to enact a tax bill to remove taxes on tips and Social Security and fulfill other campaign promises.

US President Donald Trump (IMAGE: REUTERS)

US President Donald Trump on Tuesday stated that there is “real chance" that he could raise enough funds from the tariffs to generate substantial revenue, possibly even replacing income tax. Further citing a time in the late 1800s, Trump highlighted significant financial gains from tariffs when Washington implemented tariffs and raised such funds.

“There is a chance that the money is so great that it could replace" income tax, Trump said during an interview with Fox Noticias. “You know, in the old days, about 1870 to 1913, the tariffs were the only form of money. And that’s when our nation was relatively the richest. We were the richest."

However, the US President acknowledged that any action on income tax would have to be passed by Congress, which legislates on tax policy.

With this, Trump hopes to use the tariff money to enact a tax bill to remove taxes on tips and Social Security and fulfill other campaign promises.

Trump during the interview highlighted that there was a committee formed in the 1880s to manage excess revenue, stating, “And this committee’s sole purpose was how to dispose of it, who to give it to, what do we do? And then, brilliantly, in 1913, they went to the income tax system."

He further noted that attempts to revive tariffs in the 1930s were unsuccessful, and the Great Depression was incorrectly blamed on tariffs, when in fact, it predated the tariffs.

The Trump administration has temporarily halted reciprocal tariffs imposed on several nations for 90 days. Meanwhile, the US has been trying to pressure China by imposing a 245% tariffs on China, reflecting the ongoing tariff dispute between the two nations.

Washington D.C., United States of America (USA)

News world 'Real Chance': Donald Trump Suggests US Tariffs Capable Of Replacing Income Tax