- Trump wants to swap income taxes for tariff money, but experts say the math just doesn’t add up.
- His tariffs have already hit $1.8 trillion in global trade and could shrink the U.S. economy a bit.
- A big White House meeting on Tuesday might finally bring some answers—or more drama.
So, Trump’s back at it with tariffs—and this time, he’s claiming they’ll help slash taxes for Americans. On Monday, during a Cabinet meeting, he doubled down on his latest tariff plans. Right before the meeting, he also tossed out a new idea: slapping a 25% tariff on any country that buys oil or gas from Venezuela. Just another entry in what’s become a growing list of tariffs under his watch.
Now, Trump says all this tariff cash will let him get rid of income taxes for anyone making under $150K a year. Sounds good on paper, right? But economists… they’re not so sure. The math is tricky. Experts argue there just isn’t enough money coming in from imported goods to fully replace income tax revenue. Like, not even close.
Tariffs: Tax Break or Budget Nightmare?
Even though Trump’s scaled back a few things, the tariff situation is still pretty massive. A Bloomberg study showed that all of Trump’s past and present tariffs—plus the ones he’s threatened—have impacted around $1.8 trillion in global trade. That includes those hefty 25% duties on steel and aluminum. Big picture? It’s not all roses. Bloomberg Economics estimates the tariffs could shave 0.7% off U.S. GDP and push inflation up by 0.4%. Not exactly small potatoes.
Trump insists the plan will benefit everyday Americans and rebalance trade, but critics say the real-world results don’t line up with the promises. And let’s be honest—replacing income tax with tariffs? That’s a bold move. According to Alex Durante from the Tax Foundation, the idea sounds simple but is way more complicated than it looks.
“It’s just not a realistic proposal,” Durante said back in June 2024. He pointed out that sure, tariffs used to be a major revenue source… in like, the 1800s. But now? Government spending is a whole different beast. There’s no way tariff revenue could match what people currently pay in income taxes.
Oh—and keep an eye out for a big White House meeting happening Tuesday. It’s supposed to kick off some heated talks on Trump’s full tax plan. Expect fireworks.
