Donald Trump on Tuesday used his first State of the Union address of his second term to defend his tariff-driven economic policy, arguing that import duties could eventually replace the modern income tax system and reduce the financial burden on American citizens.
Addressing a joint session of Congress at the United States Congress inside the US Capitol, Trump reiterated his long-held view that tariffs imposed on foreign goods would generate enough revenue to offset income taxes paid by Americans.
"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," Trump said.
Tariffs, courts and trade pressure
Trump described a recent ruling by the US Supreme Court on tariffs as âunfortunate,â but insisted his trade policy was safeguarding the US economy. The president said tariffs were preventing other nations from âearning at the expense of Americaâ and claimed the measures were generating significant federal revenue.
Speaking in the presence of Supreme Court justices, Trump warned that countries and corporations seeking to renegotiate trade agreements with Washington could face harsher terms if the existing framework collapsed.
He also claimed that several governments and multinational companies were keen to preserve current trade deals despite legal challenges.
Immigration, voter ID and border claims
Turning to domestic policy, Trump urged lawmakers to pass the SAVE America Act, which would require voters to show proof of citizenship at polling stations.
âEvery voter must show an ID proving they are a citizen in order to vote,â he said.
On immigration, Trump claimed his administration had delivered the âmost secure border in the history of America,â asserting that no illegal immigrants had been admitted over the past nine months. He also said fentanyl inflows had dropped by 56 per cent, calling it a record decline.
Economy, energy and jobs
Trump blamed the previous administration for inflation and a housing crisis, claiming inflation had fallen to 1.7 per cent under his leadership. He said fuel prices were below $2 a gallon, mortgage rates were easing, and annual mortgage costs had declined by nearly $5,000.
Highlighting job growth, Trump said 70,000 new jobs had been created recently, entirely within the private sector. He also pointed to rising oil and gas production, repeating his campaign slogan: "Drill, baby, drill."
Trump concluded by declaring that the United States had entered what he described as a âGolden Age,â saying, âOur nation is back â bigger, better, richer and stronger than ever before.â
