“Tariffs Will Replace Income Tax”: Donald Trump Defends Trade Policy After Supreme Court Ruling

US, Feb 25 : President Donald Trump on Tuesday defended his trade policy after the US Supreme Court struck down several of his sweeping tariffs, asserting that most trading partners remain willing to continue previously negotiated arrangements.

Addressing a joint session of Congress during his 2026 State of the Union speech, Trump claimed tariff revenues could eventually substitute the modern income tax system. He argued that congressional intervention would not be required, maintaining that foreign nations would continue honoring trade agreements to avoid stricter measures.

The Supreme Court ruled last week that the president had exceeded his authority in imposing broad import duties. Shortly after the decision, Trump introduced a fresh 10% tariff under a separate legal provision, effective Tuesday, and signaled plans to raise it to 15%. The temporary measure will remain in place for 150 days unless extended by Congress.

While Trump credited tariffs for economic gains and strong market performance, a recent New York Federal Reserve study indicated that nearly 90% of the tariff burden was borne by US businesses and consumers.