Sources from a personal meeting with the Republican presidential candidate told CNBC that Donald Trump on Thursday raised the concept of a “tariff-exclusive policy” that may ultimately allow the U.S. to eliminate the income tax.
According to a different source within the room, Trump also spoke about using tariffs to extend his negotiating power against wrongdoers throughout the meeting with Republican lawmakers on the Capitol Hill Club in Washington DC.
The remarks show that Trump, who promoted tariffs as a multifunctional foreign policy tool during his first term, is considering a way more protectionist trade agenda if he defeats President Joe Biden in November.
Spokespeople for Trump's campaign didn’t immediately reply to CNBC's request for comment. Trump said in a Truth Social post Thursday morning that “a lot was discussed, all positive” on the meeting, but didn’t provide further details.
Trump's statement that income taxes would get replaced by tariffs quickly provoked criticism.
“Replacing large-scale income taxes with tariffs is a surefire way to hit low- and middle-income Americans hard and reward top earners,” said David Kamin, a professor at New York University's law school. wrote on X.
Washington Post columnist Catherine Rampell noted that tens of tens of millions of Americans who don’t pay federal income tax are likely suffering Trump's tariff plan“That sounds like a huge tax increase for the lower and middle income classes.”
Trump's visit to the Capitol to fulfill with Republican lawmakers and business leaders marked his first return to the region since January 6, 2021, when the then-president called on his supporters to march to the U.S. Capitol to protest his defeat to Biden in 2020.
Trump was later impeached within the House of Representatives for inciting the violent mob that stormed the Capitol and temporarily halted the peaceful transfer of presidential power.
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