Back to today’s briefing

Story perspectives

Trump's Bold Thanksgiving Proposal: Tariffs Over Income Taxes?

12/3/2025

41 5 Full Breakdown

Summary

Story summary

U.S. President Donald Trump has drawn attention from supporters with Thanksgiving comments about tariffs replacing income taxes.
He has floated a plan to replace income taxes with tariffs that could cost the United States between $700 billion and $2.6 trillion annually.
Current tariff revenues are insufficient to cover those costs.
To fully replace income taxes, tariff rates would need to exceed 70%, reducing imports and revenue.

1 of 1

Story summary

U.S. President Donald Trump has drawn attention from supporters with Thanksgiving comments about tariffs replacing income taxes.
He has floated a plan to replace income taxes with tariffs that could cost the United States between $700 billion and $2.6 trillion annually.
Current tariff revenues are insufficient to cover those costs.
To fully replace income taxes, tariff rates would need to exceed 70%, reducing imports and revenue.