Trump: Tariff Revenue Could Replace Income Taxes

President Donald Trump suggested during a Fox Noticias exclusive interview that the revenue from tariffs could eventually be high enough that it could fully replace the income tax.

In addition to increasing American production and rebalancing trade relationships with foreign nations, President Trump explained that it’s possible that tariffs could bring in enough revenue to render income tax unnecessary.

WATCH:

.@POTUS: "There is a chance that the money from tariffs could be so great that it would replace" the income tax. pic.twitter.com/SCBIOPD4zZ

— Rapid Response 47 (@RapidResponse47) April 15, 2025

“Will the tariffs replace income tax?” the host bluntly asked.

“You know, you’re the only one that’s asked me that,” Trump remarked. “I deal with all these big financial geniuses, nobody ever asked — there is a chance that the money from tariffs could be so great that it would replace —”

“You know, in the old days, 18 — 1870 to 1913 — the tariffs were the only form of money [coming in to the federal government], and that’s when our nation was relatively the richest,” Trump continued. “We were the richest.”

Trump’s recent implementation of “Liberation Day” tariffs has set off a chain of events from mass panic on Wall Street and across media outlets to now, according to the Trump administration, at least 130 nations coming to the negotiating table in order to reach trade agreements that benefit everyone.

As more and more countries reach out to the administration to negotiate better trade deals, Trump declared a good faith pause in the reciprocal tariffs — 90 days for the majority of those impacted — while talks take place. The major exception to that pause is China, after Beijing retaliated with higher tariffs instead of calling for negotiations. Trump also doubled down, increasing the tariffs on Chinese imports to a total of 145%.

Despite continued turmoil in the markets — largely due to the uncertainty wrought by the tariffs’ unknown impact on the economy — Trump has urged calm and has predicted that tariffs will provide the necessary leverage to bring the United States into a stronger economic position than before.