Trump Doubles Down On Tariff-Funded Tax Cuts For Working Americans

 President Donald Trump is ramping up his plan to use tariff revenues to slash — and possibly eliminate — income taxes for millions of Americans.

The U.S. has a barbell economy.

On one end, we have a financial system and tech sector that is the envy of the world.

On the other end, we have a natural resource-economy led by energy.

In between is where working-class Americans have lost out—and we want to fix that. pic.twitter.com/ysVxibNIQ7

— Treasury Secretary Scott Bessent (@SecScottBessent) April 27, 2025

On Sunday, Trump took to Truth Social to push his vision, saying that his sweeping tariff proposals could deliver major tax breaks for workers earning under $200,000 a year.

“When Tariffs cut in, many people’s Income Taxes will be substantially reduced, maybe even completely eliminated. Focus will be on people making less than $200,000 a year,” Trump wrote.

Trump’s bold pledge comes as concerns mount over the potential economic fallout from his aggressive new trade measures, which have already shaken global markets and sparked fears of rising costs at home.

Since imposing heavy reciprocal tariffs — including a staggering 145% duty on Chinese imports — economists have warned that American consumers could end up footing the bill more than foreign exporters.

Meanwhile, Trump complicated the debate further when he told TIME Magazine (April 25 edition) he “loves” the idea of raising taxes on the wealthy to help fund middle-class tax cuts.

“I certainly don’t mind having a tax increase,” Trump said. “I would be honored to pay more…but I don’t want it used against me politically.”

Former Trump strategist Steve Bannon endorsed the concept in an interview with NewsNation’s “CUOMO,” saying that mathematically, the plan to cut middle-class taxes might require a corresponding hike on the rich.

Treasury Sec. Scott Bessent on China: “Their business model is predicated on selling cheap, subsidized goods to the U.S., and if there is a sudden stop in that, they will have a sudden stop in the economy. So they will negotiate.” https://t.co/DDuPIh4dI1 pic.twitter.com/VZ8WvUno91

— This Week (@ThisWeekABC) April 27, 2025

“It’s being fought behind closed doors right now,” Bannon said. “But to really give a huge tax break to the working and middle class, you’re going to have to increase taxes on the wealthy.”

While Bannon suggested the move could help Trump politically if he sought a return in 2028 (despite the constitutional two-term limit), others in the GOP were far less enthusiastic.

House Speaker Mike Johnson dismissed the idea outright during a Fox News interview, saying the Republican Party “stands against” raising tax rates — though he admitted the idea was floated during internal talks about how to make the 2017 tax cuts permanent.

A new CBS News poll released Sunday showed that 69% of Americans think Trump’s administration isn’t focused enough on bringing down prices, with his economic approval rating sliding to 42%, per Bloomberg.

Still, Trump’s team is insisting their strategy will eventually pay off.

Treasury Secretary Scott Bessent defended the tariffs on ABC’s This Week, saying that consumer spending remains strong and that negotiations with 17 major trading partners are underway. Bessent insisted that China, facing economic pain, would have no choice but to return to talks:

“Their business model is predicated on selling cheap, subsidized goods to the U.S.,” Bessent said. “If that stops suddenly, they’ll feel it immediately.”

Bessent also emphasized America’s “barbell economy,” with an elite financial/tech sector on one end and a resource-rich energy economy on the other — and said Trump’s policies aim to rebuild the middle.

Though China’s government has publicly denied any active negotiations with Washington, Bessent remained optimistic that a path to de-escalation could be found.

Back home, Trump is pushing an ambitious domestic tax agenda ahead of the 2026 midterms. With his 2017 tax cuts set to expire at the end of 2025, he’s promising not just an extension but new breaks: making workers‘ tips tax–free, cutting