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Can Tariffs Replace Income Tax? Donald Trump Makes Bold Promise To Americans

US President Donald Trump used his first State of the Union address of his second term to mount a vigorous defence of his economic agenda, immigration stance and trade strategy, setting the tone ahead of the November midterm elections. Speaking before a joint session of Congress at the United States Capitol in Washington, DC, Trump painted a picture of a resurgent nation and framed his policies as the foundation of renewed prosperity.
“Our nation is back, bigger, better, richer and stronger than ever before,” he said. “You’ve seen nothing yet. We’re going to do better and better and better. This is the Golden Age of America.”
Tariffs At The Core Of Economic Vision

Trade policy formed the backbone of Trump’s speech. He reiterated his long-held view that tariffs imposed on foreign goods could one day reduce, or even replace, the need for income taxes in the United States. “As time goes by, I believe that tariffs, paid for by foreign countries, will, like in the past, substantially replace the modern-day system of income tax, taking a great financial burden off the people that I love,” he said.
Referring to a recent ruling by the Supreme Court, Trump described it as “unfortunate” but maintained that his tariff programme was shielding American interests and boosting federal revenues. With Supreme Court justices present in the chamber, he argued that the policy prevented other nations from “earning at the expense of America.” He also suggested that countries and companies engaged in trade deals with Washington were keen to preserve those arrangements, cautioning that any renegotiated agreement could be “far worse for them.”
Immigration, Voting And Border Security

Immigration featured prominently in the address. Trump urged lawmakers to pass the ‘SAVE America Act’ legislation he said would bar undocumented immigrants from voting. “It’s simple, every voter must show an ID proving they are a citizen in order to vote,” he said.
On border control, Trump asserted that his administration had achieved unprecedented results, calling it the “most secure border in the history of America.” He added, “In the past nine months, zero illegal immigrants have been admitted into the United States,” while emphasising that legal immigration would continue to be welcomed.
He further claimed that fentanyl inflows had declined by 56 per cent over the past year, describing it as a historic low.
Inflation, Energy And Domestic Priorities

Turning to the economy, Trump criticised the previous administration over inflation and housing challenges. He said inflation had eased to 1.7 per cent last month and pointed to falling fuel prices and mortgage rates. “Low interest rates will solve the housing disaster,” he said.
Highlighting employment gains, he cited 70,000 newly created jobs, all in the private sector, and underscored increased energy production. “I kept my promise, drill, baby, drill,” Trump said. He also referenced oil imports from Venezuela, describing the country as a “new friend and partner.”
On domestic policy, Trump said federal Diversity, Equity and Inclusion initiatives had been dismantled and claimed 2.4 million Americans had moved off food stamps into the workforce. Trump said, “Our country is winning again, to an extent we don’t even know what to do with it.”

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