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WATCH: Trump says tariffs could replace income tax

Politics Feb 24, 2026 10:22 PM EDT

President Donald Trump touted his revamped tariffs during his State of the Union address Tuesday, saying he believes the import taxes could ultimately replace income tax.

Watch the full clip in our video player above.

"As time goes by, I believe the 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.

On Friday, the Supreme Court delivered a major setback to Trump's agenda when it struck down his sweeping tariffs. Trump announced later he would reimpose global tariffs at 15%, though they took effect Tuesday at 10%.

Trump's address comes after 13 months of break-neck deregulation, a record number of executive actions, mass layoffs, aggressive immigration tactics and more.

Ahead of the speech, Trump was expected to outline his administration's accomplishments, make his case for keeping his party in power this November and celebrate the 250th anniversary of America's independence.

At the same time, a number of pain points have threatened to overshadow Trump's positive messages during his primetime speech.

In addition to the tariff ruling by the Supreme Court, a partial government shutdown of the Department of Homeland Security, brought on by Democratic opposition to Trump's aggressive immigration enforcement, seems to have no end in sight. And questions about the Jeffrey Epstein investigation continue to dog his administration.

According to the latest PBS News/NPR/ Marist poll, 60% of Americans say the country is worse off compared to a year ago, while 40% believe the country is in better shape.