- President Donald Trump suggests tariffs, projected to generate up to $2.7 trillion, could replace federal income taxes, citing pre-1913 U.S. history when tariffs were the primary revenue source.
- His aggressive tariff policy aims to force companies to relocate factories to the U.S., leveraging trade dynamics rather than focusing solely on immediate revenue.
- Trump references the 1870-1913 period, claiming tariffs fueled U.S. prosperity, while blaming the 1913 income tax shift and later tariffs for economic decline.
- He estimates tariffs could yield over $1 trillion in revenue by 2026, with funds potentially funding tax cuts (e.g., eliminating taxes on tips) or reducing national debt.
- Critics warn of higher consumer prices, but some economists argue tariffs could strengthen domestic manufacturing and reduce reliance on adversarial trade partners.
President Donald Trump has suggested that revenue from his proposed «Liberation Day» tariffs could serve as a substitute to federal income tax.
In a Fox News interview with host Rachel Campos-Duffy on April 15, Trump was asked whether his aggressive trade policies could generate enough revenue to replace income taxes.
«That’s a very interesting question nobody has ever asked me that before,» Trump responded, praising Campos-Duffy for broaching the subject. «There’s a real chance. There is a chance that the money from tariffs could be so great that it would replace. 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.»
Trump also referenced the Gilded Age, a period marked by rapid industrialization and economic expansion, wherein a committee was formed to «get rid of money.» (Related: Trump’s tariffs will create millions of jobs.)
«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. Then, around 1931 or 1932, they tried to bring back tariffs, but it was too late,» the president told Campos-Duffy. «And they loved to blame tariffs for the Great Depression. But the Great Depression came before they put the tariffs on.»
Trump: Tariffs could generate over $1 trillion in 2026
Aside from becoming a substitute for federal income tax, Trump also floated the idea that tariffs could generate over $1 trillion in 2026.
During the interview, Trump made it clear that his tough stance on trade isn’t just about immediate financial gains – it is a calculated strategy to bring factories back to the U.S., reduce reliance on foreign adversaries and ultimately strengthen the American economy.
«Billions and billions of dollars and hundreds of billions of dollars over a period of a year. Before I gave a little bit of a pause to lower just a little bit because, you know, it’s a transition. You have to be, you have to have a little flexibility. But we were making two billion and three billion dollars a day. We never made money like that,» the president said.
While critics warn that tariffs could raise consumer prices in the short term, several financial analysts admit the strategy could pay off. ING economists acknowledged that broad tariffs on China and other trade partners may ultimately benefit the U.S. economy by reducing dependence on foreign manufacturing and boosting domestic production.
In other words, the president’s vision goes beyond short-term revenue. With billions already pouring into federal coffers and China coming to the table, Trump’s tariff playbook may well prove to be the key to reclaiming American economic dominance.
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Watch the full episode of the «Health Ranger Report» with Mike Adams and Maxime Bernier as they discuss the Canada-U.S. trade war, immigration policies and calls for a populist revolution in Canada amid post-Trudeau political shifts.
This video is from the Health Ranger Report channel on Brighteon.com.
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