Mr. Trump's claim about tariffs lowering taxes amounts to "an argument that says, 'If Americans pay more out of their left pocket, the government will be able to put more in their right pocket,'" said Joe Rosenberg, senior fellow at the Urban-Brookings Tax Policy Center, another think tank focused on taxes.

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.

They estimate that the tariffs Trump has imposed and scheduled as of April 2025 would generate nearly $167 billion in new federal tax revenue in 2025 — covering less than 25% of the cost of eliminating income taxes for people earning below $200,000.