President Donald Trump indicated that income taxes will be reduced or even eliminated for many people due to tariffs, with a focus on people earning under $200,000 per year.

Economists have been skeptical of whether revenue from tariffs could actually offset income tax for Americans, despite President Donald Trump repeatedly saying it will.

President Trump floated a new income tax cut on Sunday as a way to mitigate the impact of his sweeping tariffs, which polls show Americans increasingly believe will lead to higher prices. “When Tariffs cut in,

U.S. Treasury Secretary Scott Bessent on Sunday did not back President Donald Trump's assertion that tariff talks with China were under way and said he did not know if the U.S. president had talked to Chinese President Xi Jinping.