US President Donald Trump suggested on Sunday that his sweeping tariffs would help him reduce income taxes for people making less than US$200,000 a year, as public anxiety rises over his economic agenda.
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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,” Trump wrote on Sunday on his Truth Social network.
In a matter of weeks, Trump’s tariffs have roiled the global economy, led to fears of higher prices for Americans and led to warnings that his policies will lead to a recession.
A CBS News poll released on Sunday said 69 per cent of Americans believe the Trump administration was not focused enough on lowering prices. Approval of Trump’s handling of the economy in the poll declined to 42 per cent compared with 51 per cent in early March.
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Trump wants to extend reductions in income taxes that were approved in 2017 during his first presidency, many of which are due to expire at the end of 2025. He also has proposed expanding tax breaks – including by exempting workers’ tips and social security earnings – while slashing the corporate tax rate to 15 per cent from 21 per cent.
Treasury Secretary Scott Bessent responded to polling on Sunday, saying that US consumers are still spending and the administration is working on bilateral trade deals after Trump imposed so-called reciprocal tariffs on many countries in early April. He subsequently paused the levies for 90 days for all affected countries except China.