'Tariffs will replace income tax': Trump in State of the Union speech, calls SC ruling on duties 'unfortunate'
The remarks came days after the Supreme Court, in a 6-3 decision, invalidated Trump’s sweeping global tariffs, declaring them illegal. In response, the President moved to impose fresh 15% tariffs on all countries
- Feb 25, 2026,
- Updated Feb 25, 2026 8:41 AM IST
Standing before members of Congress and several Supreme Court justices seated in the chamber, President Donald Trump used his State of the Union address to openly criticise the court’s recent decision striking down his global tariffs, calling the ruling “unfortunate” and insisting the policy would continue under alternative legal authority.
The remarks came days after the Supreme Court, in a 6-3 decision, invalidated Trump’s sweeping global tariffs, declaring them illegal. In response, the President moved to impose fresh 15% tariffs on all countries.
Despite the judicial setback, Trump made clear that he intends to keep tariffs central to his economic strategy.
“As time goes by, I believe the tariffs paid for by foreign countries will, like in the past, substantially replace the modern-day system of income tax, taking a great financial burden off the people that I love,” Trump said in his State of the Union address speech.
He argued that tariff revenue could ease pressure on American taxpayers by reducing dependence on income tax collections.
"I used these tariffs to make great deals for our countries. Everything was working well as countries were ripping us off for hundreds of billions of dollars. Yet these countries were all happy even though they were not making money as they used to. Then the unfortunate ruling from the US SC came down. But the good news is almost all the countries and corps want to keep the deal that they had made," the Republican president yet again during his State of the Union address at the Capitol Hill on Wednesday.
The address underscored Trump’s defiance of the court’s ruling and his continued push to position tariffs not only as a trade tool, but as a structural alternative to income taxation.
Standing before members of Congress and several Supreme Court justices seated in the chamber, President Donald Trump used his State of the Union address to openly criticise the court’s recent decision striking down his global tariffs, calling the ruling “unfortunate” and insisting the policy would continue under alternative legal authority.
The remarks came days after the Supreme Court, in a 6-3 decision, invalidated Trump’s sweeping global tariffs, declaring them illegal. In response, the President moved to impose fresh 15% tariffs on all countries.
Despite the judicial setback, Trump made clear that he intends to keep tariffs central to his economic strategy.
“As time goes by, I believe the tariffs paid for by foreign countries will, like in the past, substantially replace the modern-day system of income tax, taking a great financial burden off the people that I love,” Trump said in his State of the Union address speech.
He argued that tariff revenue could ease pressure on American taxpayers by reducing dependence on income tax collections.
"I used these tariffs to make great deals for our countries. Everything was working well as countries were ripping us off for hundreds of billions of dollars. Yet these countries were all happy even though they were not making money as they used to. Then the unfortunate ruling from the US SC came down. But the good news is almost all the countries and corps want to keep the deal that they had made," the Republican president yet again during his State of the Union address at the Capitol Hill on Wednesday.
The address underscored Trump’s defiance of the court’s ruling and his continued push to position tariffs not only as a trade tool, but as a structural alternative to income taxation.