'Tariffs will replace income tax': Donald Trump defends trade deals after Supreme Court ruling
Times of India
by TOI BUSINESS DESKFebruary 25, 2026
AI-Generated Deep Dive Summary
President Donald Trump recently defended his tariff policies during a speech at a joint session of Congress, claiming that tariffs could eventually replace income taxes and that most trading partners are willing to continue existing trade deals despite a recent Supreme Court ruling. The court had struck down several of Trump's sweeping tariffs, but he argued that the legal challenges were not significant enough to deter other nations from maintaining their agreements. Trump emphasized that his tariff strategy has been beneficial for the U.S., bringing in substantial revenue and securing favorable deals with foreign countries.
The Supreme Court’s decision found that Trump had overstepped his authority by imposing tariffs without proper legal justification. However, Trump quickly responded by implementing new 10% tariffs under a different legal framework, which took effect earlier this week. He has also pledged to increase the rate to 15% and extend these temporary measures for up to 150 days unless Congress intervenes. Trump credited tariffs with driving the country's economic growth, including record highs in stock markets like the Dow Jones and S&P, while dismissing criticism from economists who predicted negative outcomes.
Despite Trump’s assertions, a recent report by the New York Federal Reserve revealed that nearly 90% of the economic burden imposed by tariffs falls on U.S. firms and consumers rather than foreign nations. This raises questions about the long-term sustainability of his tariff-based approach to trade policy. As the U.S. marks its 250th anniversary this year, the debate over Trump’s legacy in international trade will likely continue to shape global economic relations and policies.
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Originally published on Times of India on 2/25/2026