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flag President Trump vows to replace federal income tax with tariffs despite Supreme Court ruling, new 15% import tax announced.

flag In his February 25, 2026, State of the Union address, President Donald Trump reiterated his claim that tariffs paid by foreign countries could eventually replace the federal income tax, despite a Supreme Court ruling invalidating his broad tariff authority. flag He asserted that tariffs had generated hundreds of billions in revenue, strengthened national security, and led to favorable trade deals, while maintaining that countries continue to comply due to the threat of harsher measures. flag Trump announced a new 15% tariff on all imports, calling the Court’s decision “unfortunate” but not a barrier to his economic agenda. flag Experts, however, note the proposal lacks feasibility, as tariffs would need to be astronomically high to match income tax revenue, likely collapsing trade and harming U.S. consumers.

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