President Trump has hailed the effects of his tariffs, claiming the US is experiencing a “transition stage” and that the benefits of his flagship economic policy will become even greater with time.
The President posted on Truth Social: “Gasoline just broke $1.98 a Gallon, lowest in years, groceries (and eggs!) down, energy down, mortgage rates down, employment strong, and much more good news, as Billions of Dollars pour in from Tariffs. Just like I said, and we’re only in a TRANSITION STAGE, just getting started!!! Consumers have been waiting for years to see pricing come down. NO INFLATION, THE FED SHOULD LOWER ITS RATE!!!”
Last week, President Trump said income tax could be abolished for those earning under $200,000, as a result of the income earned from his “reciprocal” tariffs.
“When Tariffs cut in, many people’s Income Taxes will be substantially reduced, maybe even completely eliminated,” Trump posted.
“Focus will be on people making less than $200,000 a year. Also, massive numbers of jobs are already being created, with new plants and factories currently being built or planned. It will be a BONANZA FOR AMERICA!!! THE EXTERNAL REVENUE SERVICE IS HAPPENING!!!”
President Trump made no secret of his ambition to abolish federal income taxes during his election campaign.
A week before his inauguration, he made another post on Truth Social where he outlined his ambition to replace the Internal Revenue Service, taxing Americans, with an External Revenue Service, taxing foreign trade.
“For far too long, we have relied on taxing our Great People using the Internal Revenue Service (IRS),” President Trump posted.
“Through soft and pathetically weak Trade agreements, the American Economy has delivered growth and prosperity to the World, while taxing ourselves. It is time for that to change. I am today announcing that I will create the EXTERNAL REVENUE SERVICE to collect our Tariffs, Duties, and all Revenue that come from Foreign sources. We will begin charging those that make money off of us with Trade, and they will start paying, FINALLY, their fair share. January 20, 2025, will be the birth date of the External Revenue Service. MAKE AMERICA GREAT AGAIN!”
Despite the uncertainty created by President Trump’s tariffs, wages rose in April and the US economy added over 175,000 new jobs.
“This is the second month in a row where the jobs report has beat expectations. Wages are continuing to rise and labor force participation is increasing. This is exactly what we want to see. More Americans working for higher wages. More winning is on the way!” White House Press Secretary Karoline Leavitt said in response to the latest jobs report.