Trump Says Tariffs Could Replace Income Tax, Citing Historical Precedent
Former U.S. President Donald Trump has reignited debate over the role of tariffs in the American economy, claiming in a recent Fox News interview that there is a “real chance” revenue generated from tariffs could eventually replace the current income tax system. Drawing on historical precedent, Trump pointed to the period between 1870 and 1913, when tariffs were the primary source of federal revenue and the United States, he argued, was “relatively the richest” it had ever been.
“There’s a real chance,” Trump said. “There is a chance that the money from tariffs could be so great that it would replace [income tax].” He noted that in the 1880s, the federal government even formed a committee to manage surplus funds before the introduction of the federal income tax in 1913.
Trump dismissed long-standing economic criticisms linking high tariffs to the Great Depression, claiming the downturn occurred before major tariff policies were implemented. “People blame tariffs, but the depression came before that,” he said, seeking to reframe one of the more controversial aspects of trade history.
Throughout his presidency and ongoing campaign, Trump has promoted tariffs as a key economic tool. He claimed the U.S. had been generating “billions and billions of dollars” daily from tariffs under his leadership. “We were making two billion and three billion dollars a day. We never made money like that,” he said. He also acknowledged temporary tariff reductions during transition periods to help American businesses adjust.
Despite the bold claims, economic experts have often cautioned that tariffs act as indirect taxes on consumers and can lead to increased costs for goods, strained international relations, and retaliation from trade partners. Trump’s remarks also come at a time of shifting policy: his administration recently announced a 90-day pause on customised reciprocal tariffs affecting dozens of countries—a notable departure from its typically hardline stance.
At the same time, tariffs on Chinese goods have sharply increased, now reaching 245 percent. Officials say this is part of a broader effort to secure trade agreements that favor U.S. manufacturing and reduce the nation’s longstanding trade deficit. However, the sweeping nature of the tariffs has created uncertainty in financial markets and reignited fears of a possible recession.
In the same interview, Trump ventured into more controversial territory by expressing admiration for El Salvador’s President Nayib Bukele and his crackdown on crime. Trump praised the country’s prison infrastructure and floated the idea of sending violent U.S. criminals to these foreign facilities.
“He’s made it a very safe place,” Trump said, referring to Bukele’s anti-gang campaigns. When asked whether such facilities could be used to house American criminals, including “homegrown” offenders, Trump did not dismiss the idea.
These comments come as Trump positions himself for another White House run, promoting a vision of strong borders, tough crime policies, and a restructured economic system based heavily on trade tariffs. While his proposals have ignited both support and concern, they continue to shape the national conversation on taxation, trade, and law enforcement policy heading into 2025.
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