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In a controversial moment during his 2026 State of the Union address, President Donald Trump claimed that import tariffs — taxes on foreign goods — could eventually replace the traditional U.S. income tax system. Trump argued that tariffs paid by foreign countries could relieve Americans of financial burdens. This claim comes amid legal setbacks over his tariff policies after the U.S. Supreme Court struck down several of his sweeping global tariffs. Trump responded by seeking new tariff measures while defending the economic impact of his trade strategy.

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00:00One of the primary reasons for our country's stunning economic turnaround, the biggest
00:05in history, where the Dow Jones broke 50,000 four years ahead of schedule and the S&P hit
00:127,000, where it wasn't supposed to do it for many years, were tariffs.
00:19I used these tariffs, took in hundreds of billions of dollars to make great deals for
00:24our country, both economically and on a national security basis.
00:30Everything was working well.
00:31Countries that were ripping us off for decades are now paying us hundreds of billions of dollars.
00:37They were ripping us so badly, you all know that.
00:40Everybody knows it.
00:41Even the Democrats know it.
00:43They just don't want to say it.
00:44And yet, these countries are now happy, and so are we.
00:49We made deals.
00:50The deals are all done.
00:52And they're happy.
00:53They're not making money like they used to, but we're making a lot of money.
00:56There was no inflation, tremendous growth.
00:59And the big story was how Donald Trump called the economy correctly.
01:03And 22 Nobel Prize winners in economics didn't.
01:07They got it totally wrong.
01:09They got it really wrong.
01:11And then just four days ago, an unfortunate ruling from the United States Supreme Court.
01:16It just came down.
01:17It came down.
01:18Very unfortunate ruling.
01:23But the good news is that almost all countries and corporations want to keep the deal that
01:30they already made.
01:31Right, Scott?
01:32Right, Scott?
01:51So despite the disappointing ruling, these powerful country-saving — it's saving our country,
01:59the kind of money we're taking in, peace-protecting — many of the wars I settled was because of
02:05the threat of tariffs.
02:06I wouldn't have been able to settle them without — will remain in place under fully approved
02:11and tested alternative legal statutes.
02:14And they have been tested for a long time.
02:17They're a little more complex, but they're actually probably better — leading to a solution
02:23that will be even stronger than before.
02:27Congressional action will not be necessary.
02:29It's already time-tested and approved.
02:32And as time goes by, I believe the tariffs paid for by foreign countries will, like in the
02:38past, substantially replace the modern-day system of income tax, taking a great financial burden
02:45off the people that I love.
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