Trump Threatens that Tariff Policy Will Succeed and Americans Won't Have to Pay Taxes | WPN World People News

U.S. President Donald Trump, during a speech at the Republican Governors Association (RGA) dinner on February 20, stated that he would revive the American Dream and reiterated the benefits of reciprocal tariffs. He said that once the tariff policy succeeds, Americans might no longer have to pay income taxes.

Trump claimed that since he took office, aside from reducing government waste, the tariff policy has brought substantial funds to the U.S., including successfully recovering $60 billion (approximately NT$1.98 trillion) annually from a certain country. He further mentioned that if the tariff policy succeeds, tax revenues could come from foreign sources, and American citizens might not need to pay income taxes, just like during the period from 1870 to 1913 when the U.S. adopted a full tariff policy and became the wealthiest country in the world.

Trump also boasted about the advantages of reciprocal tariffs, where the U.S. imposes tariffs in proportion to what other countries charge on American goods. He stated that the European Union has reduced their previously high tariffs to match the 2.5% tariff the U.S. imposes. Regarding inflation, Trump noted that as energy prices fall, prices for everyday goods, including eggs and bacon, would stabilize.

Experts have expressed differing views on this matter. Given the current U.S. economic conditions, they believe that if Trump's tariff policy continues, although it may not lead to stagflation, the shift from importing products from emerging markets to buying U.S.-made goods, with higher wages and production costs, would result in price increases that would be passed directly to consumers. Therefore, under Trump's new policies, including layoffs and tariffs, there is concern that it could harm both consumers and the economy.