US President Donald Trump, in his annual State of the Union address, defended his extensive tariffs on foreign nations, asserting that those who “exploited the US for years are now contributing billions of dollars.” The Republican leader reiterated his belief that tariffs could eventually replace the modern income tax system, a claim he initially made at the start of his second term.
“Over time, I believe that tariffs, paid by foreign countries, will, as in the past, significantly replace the modern income tax system, relieving a great financial burden from the people I care about,” Trump stated.
Trump credited tariffs as a major factor in the US’s economic revival. “I used these tariffs to collect hundreds of billions of dollars, enabling us to make advantageous deals for our country, both economically and regarding national security. Everything was functioning well. Countries that exploited us for decades are now paying us hundreds of billions of dollars. They exploited us severely,” he remarked.
“These countries are now content, and so are we. We’ve made agreements. The agreements are finalized. They are content. They’re not profiting as they once did, but we’re generating significant revenue. There was no inflation, and there was tremendous growth,” he added.
Trump criticized the US Supreme Court’s decision to overturn his prior sweeping import duties, describing it as “very unfortunate.”
“Just four days ago, an unfortunate ruling from the United States Supreme Court came down. Very unfortunate ruling. However, the good news is that nearly all countries and corporations wish to maintain the agreements they have already made, understanding that the legal authority I hold as President to forge a new deal could be much more unfavorable for them. Consequently, they will continue to follow the successful path we negotiated before the Supreme Court’s unfortunate involvement,” he said.
Trump reiterated his “solved wars claim,” suggesting that the threat of tariffs was a factor in resolving conflicts.
“Despite the disappointing ruling, these powerful countries are saving – it’s saving our country the kind of money we’re bringing in – peace-protecting many of the wars I settled was because of the threat of tariffs. I wouldn’t have been able to resolve them without this – will remain in place under fully approved and tested alternative legal statutes. And they have been tested for a long time,” he stated.
“They’re a bit more complex, but they’re probably better, leading to a solution that will be even stronger than before. Congressional action will not be necessary. It’s already time-tested and approved. And over time, I believe that tariffs will alleviate a great financial burden from the people I care about,” Trump added.
Just six months after his return to the White House, Trump dismantled the previous global economic order, leveraging the US’s immense economic power to penalize countries unwilling to agree to one-sided trade deals and extract significant concessions from those that did. On April 2, the US President announced “reciprocal” taxes of up to 50 percent on imports from countries with which the US had trade deficits and a 10 percent “baseline” tax on nearly all other nations. He invoked a 1977 law to declare the trade deficit a national emergency, justifying his sweeping import taxes.
As the announcement sparked backlash, he suspended the reciprocal tariffs for 90 days to allow countries time to negotiate. Eventually, some countries conceded to Trump’s demands, while those that did not faced harsher tariffs.
Nevertheless, the US Supreme Court’s recent 6-3 ruling delivered a significant setback to Trump’s economic agenda. In response to the defeat, Trump signed a new 15 percent tariff order on imports from around the world, just hours after the Supreme Court ruling. These new tariffs, limited to a duration of 150 days, are set to take effect “almost immediately.”
