Trump’s first address to Congress: tariffs, tax cuts, and key policies

Trump emphasized five key economic priorities, including trade tariffs as a negotiation tool, domestic tax cuts, expanded oil drilling, criticism of Biden-era semiconductor subsidies, and a call to use tax policies to encourage foreign companies to relocate to the U.S.

1. Trade Tariffs: A Powerful Bargaining Tool

Trump reaffirmed his commitment to using tariffs strategically, even against U.S. allies such as Canada, Mexico, and the European Union (EU)—not just China. He argued that higher tariffs on imports would secure better trade deals for America.

“The time has come for us to take our turn,” Trump said, defending his 25% tariff on Canadian and Mexican goods.

“For decades, other countries have imposed tariffs on us. Now, it’s our turn. The EU, China, Brazil, India, Mexico, and Canada—they’ve all taxed us more than we taxed them. It’s unfair.”

Trump’s remarks were met with thunderous applause from many Republican lawmakers, who saw his tariff policies as a means of protecting American economic interests. However, some within his party remain concerned about the impact on prices and the broader economy.

“There may be some disruptions,” Trump acknowledged, “but we can handle it—it won’t be much.”

2. Domestic Tax Cuts: Relief for American Workers

While Trump proposed higher tariffs on foreign goods, he urged Congress to implement sweeping domestic tax cuts, totaling $4.5 trillion, to ease the financial burden on Americans.

He called for eliminating income taxes on Social Security benefits, tipped wages, and overtime pay. Additionally, he proposed tax breaks for auto loans on American-made vehicles and an extension of the 2017 Tax Cuts and Jobs Act.

Despite Republican control of both chambers, some lawmakers worry that Trump’s tax plan could exacerbate the federal deficit.

3. Oil Drilling to Lower Living Costs

With inflation still above pre-pandemic levels and avian flu outbreaks causing egg prices to skyrocket, Trump reiterated his promise to reduce household costs.

The Trump administration has allocated $1 billion to combat avian flu, continuing a Biden-era initiative. However, Trump blamed Biden’s policies for persistent inflation and stressed that his energy strategy would help ease financial pressures.

He pledged to reverse Biden’s green energy agenda and expand oil and gas drilling, citing a massive natural gas pipeline project in Alaska, in partnership with Japan and South Korea.

4. Praise for Elon Musk’s Cost-Cutting Efforts

Trump praised Elon Musk, head of the Department of Government Efficiency (DOGE), for eliminating wasteful spending and firing thousands of underperforming government employees.

DOGE claimed to have uncovered fraud in Social Security payments, including 4.7 million people allegedly over 130 years old receiving benefits. However, media reports and experts have challenged these figures, suggesting they were based on outdated records.

5. Ending Biden’s Semiconductor Subsidies

Trump called for an end to Biden’s CHIPS Act, arguing that subsidies for semiconductor manufacturers were wasteful. Instead, he proposed using tax incentives and tariffs to pressure foreign chipmakers to relocate to the US.