Trump plans tariffs to replace income tax

In a recent Fox Noticias interview, President Donald Trump suggested that revenue from tariffs could potentially replace income tax, citing historical precedents when tariffs were the primary source of federal income. His administration's 'Liberation Day' tariffs have prompted negotiations with at least 130 nations while escalating tensions with China, leading to a 145% increase in tariffs on Chinese imports. Market reactions have been volatile, with global investors pulling back from U.S. stocks amid fears of an economic downturn linked to the tariff strategy. Trump's shifting tariff policies have also raised concerns among U.S. allies regarding their security dependence on Washington, particularly in Europe, where leaders are reconsidering defense budgets. Despite the turmoil, the Trump administration argues that these tariffs are crucial for revitalizing American manufacturing and ensuring national security against adversaries like China. The long-term implications of these policies remain uncertain, with significant impacts on both the economy and international relations.