President Donald Trump indicated that income taxes will be reduced or even eliminated for many people due to tariffs, with a focus on people earning under $200,000 per year.

President Donald Trump suggested Sunday that his sweeping tariffs would help him reduce income taxes for people making less than $200,000 a year, as public anxiety rises over his economic agenda.Trump has previously argued that tariff revenue could replace income taxes,

Economists have been skeptical of whether revenue from tariffs could actually offset income tax for Americans, despite President Donald Trump repeatedly saying it will.

Nearly four weeks into a costly global trade war with no end in sight, Mr. Trump is facing a barrage of lawsuits from state officials, small businesses and even once-allied political groups, all contending that the president cannot sidestep Congress and tax virtually any import at levels to his liking.

Ryan Petersen said a lot of what Americans buy from China is "discretionary spend" — optional items that can be replaced if they become expensive.

U.S. Treasury Secretary Scott Bessent on Sunday did not back President Donald Trump's assertion that tariff talks with China were under way and said he did not know if the U.S. president had talked to Chinese President Xi Jinping.