'Real chance': President Trump claims tariff revenue may eliminate the need for income tax

US President Donald Trump said in a Fox News interview that revenue from sweeping tariffs might be enough to replace the federal income tax, calling it a “real chance” to overhaul the tax system. He cited historical examples from the late 1800s, when tariffs were the government’s primary source of income. “There is a chance that the money is so great that it could replace [income tax],” Trump said, adding, “In the old days, about 1870 to 1913, the tariffs were the only form of money.

And that’s when our nation was relatively the richest. We were the richest.” Trump has pushed for Congress to remove taxes on tips and Social Security, and said tariffs could help fund such initiatives.



“We were making two billion and three billion dollars a day. We never made money like that,” he claimed, noting a temporary reduction in rates to ease economic transitions. He dismissed the argument that tariffs caused the Great Depression, saying, “The Great Depression came before they put the tariffs on.

” In the same interview, Trump praised El Salvador’s anti-crime crackdown under President Nayib Bukele and expressed openness to sending violent American criminals to similar facilities. “He’s made it a very safe place,” Trump said, suggesting that the US should also get “rid of our criminals..

. allowed to come in by Biden.” Trump suggests tariffs could replace income tax: 'There's a chance' The comments come as the administration imposes a 90-day pause on new reciprocal tariffs, while raising duties on Chinese goods to as high as 245 per cent.

The tariff moves have shaken financial markets and stoked fears of a recession, even as officials engage in trade talks to reduce the US trade deficit ..