President Trump claims tariffs will fund significant income tax reductions for those earning under $200,000, potentially eliminating their taxes, while boosting jobs through new factories, though economists question the feasibility. Treasury Secretary Scott Bessent defends Trump’s trade policies, dismissing market concerns as “statistical noise” and hinting at U.S.-China trade negotiations, despite China’s denial of talks. A CBS News poll shows 69% of Americans feel Trump’s administration lacks focus on lowering prices, with his economic approval rating falling to 42% from 51% since early March.

President Donald Trump’s assertion that sweeping tariffs could fund substantial income tax reductions for individuals earning less than $200,000 annually has ignited debate, as detailed in his Sunday Truth Social post.. Trump claimed tariffs would generate enough revenue to potentially eliminate income taxes for this income bracket, while also creating massive job growth through new factories and plants, describing the policy as a “BONANZA FOR AMERICA.” However, economists have long challenged the feasibility of replacing income tax revenue with tariffs, citing the limited scope of tariff income relative to federal budgets. The proposal aligns with Trump’s broader fiscal agenda, which includes extending the 2017 tax cuts set to expire in 2025, exempting workers’ tips and Social Security earnings from taxes, and lowering the corporate tax rate to 15% from 21%. Treasury Secretary Scott Bessent, defending Trump’s trade strategy on ABC’s This Week, dismissed concerns about waning confidence in U.S. markets as “statistical noise,” emphasizing the resilience of the U.S. government bond market as the world’s safest.

Bessent’s discussions with Chinese counterparts during the IMF and World Bank spring meetings last week in Washington, D.C., focused on financial stability, though he remained ambiguous about whether Trump had directly engaged with Chinese President Xi Jinping. Trump’s claims of ongoing U.S.-China talks were contradicted by China’s denial, with Bessent suggesting the Chinese were addressing a different audience while affirming a negotiation process exists. He argued that China’s business model cannot sustain high U.S. tariffs, pointing to a strategic recalibration in bilateral trade dynamics.

Public sentiment, as captured in a CBS News poll, reveals skepticism about Trump’s economic priorities, with 69% of Americans believing his administration is not sufficiently focused on lowering prices, and his economic approval rating dropping to 42% from 51% in early March. Trump’s tariff policies have unsettled markets, raising fears of higher consumer prices and potential recession risks, while prompting debates about the U.S.’s status as a financial haven. Despite these concerns, Trump’s vision of tariff-driven tax relief and job creation reflects his administration’s push to reshape economic policy, though the practicality of funding tax cuts through trade levies remains contentious amid volatile global trade relations and domestic economic pressures.

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