United States | 25 Feb 2026

US President Donald Trump has once again strongly defended his tariff policy, even after the Supreme Court struck down the duties as illegal. Speaking at his “People’s State of the Union” address on Tuesday, Trump painted the past year as a major turnaround for the country and claimed his trade moves brought huge economic and security benefits to the United States.

Trump argued that for many years other countries were “ripping” the US off “very bad”. He said that even Democrats are aware of this reality, but they “just don't want to say it”. According to him, the tariffs helped the US earn hundreds of billions of dollars and forced other nations to come to the negotiating table. He claimed these deals benefited America both financially and in terms of national security.

Despite the court ruling, Trump called the decision “very unfortunate” but insisted that most countries and corporations want to stick to the agreements already made. He warned that the legal powers he still holds as president to negotiate new deals could be “far worse” for them. “We are winning big,” he said, adding that many conflicts were resolved simply due to the threat of tariffs. Trump also stressed that no congressional action would be needed, as alternative trade paths are already being worked out.

Reiterating his boldest claim, Trump said tariffs paid by foreign countries could eventually replace income tax. “It's already time tested and approved,” he said, adding that over time, tariffs would “substantially replace the modern day system of income tax,” easing the financial burden on Americans. According to Trump, this approach would protect peace, strengthen the economy, and benefit the people he says he loves.

Tariffs Will Replace Income Tax’: Trump Defends Trade Policy After Supreme Court Setback

US President Donald Trump has once again strongly defended his tariff policy, even after the Supreme Court struck down the duties as illegal. Speaking at his “People’s State of the Union” address on Tuesday, Trump painted the past year as a major turnaround for the country and claimed his trade moves brought huge economic and security benefits to the United States.

Trump argued that for many years other countries were “ripping” the US off “very bad”. He said that even Democrats are aware of this reality, but they “just don't want to say it”. According to him, the tariffs helped the US earn hundreds of billions of dollars and forced other nations to come to the negotiating table. He claimed these deals benefited America both financially and in terms of national security.

Despite the court ruling, Trump called the decision “very unfortunate” but insisted that most countries and corporations want to stick to the agreements already made. He warned that the legal powers he still holds as president to negotiate new deals could be “far worse” for them. “We are winning big,” he said, adding that many conflicts were resolved simply due to the threat of tariffs. Trump also stressed that no congressional action would be needed, as alternative trade paths are already being worked out.

Reiterating his boldest claim, Trump said tariffs paid by foreign countries could eventually replace income tax. “It's already time tested and approved,” he said, adding that over time, tariffs would “substantially replace the modern day system of income tax,” easing the financial burden on Americans. According to Trump, this approach would protect peace, strengthen the economy, and benefit the people he says he loves.