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Trump tariffs live updates: US may cut income tax due to tariff revenue; Trump says Xi agreed to expand farm buys
Yahoo Finance Updated
Mon, December 1, 2025 at 1:30 AM EST
2 min read
President Trump said on Thursday his administration may cut income tax completely over the next two years because of the government revenue generated from tariffs.
"Over the next couple of years, I think we'll substantially be cutting and maybe cutting out completely, but we'll be cutting income tax. Could be almost completely cutting it because the money we're taking in is going to be so large," Trump told US military service members on a video call.
On Wednesday, Trump said Chinese leader Xi Jinping "pretty much" agreed to increase the speed and size of the country's agricultural purchases. Trump and Xi held their first call Monday since the US and China struck a trade and tariff truce last month.
"I think he’s going to very much surprise you on the upside,” Trump told reporters.
Trump touted the call as "very good," and said he had accepted an invitation to visit Beijing in April and that Xi would reciprocate with a visit to the US later next year.
Trump: Revenue will 'skyrocket'
The White House is quietly preparing a backup plan as the US Supreme Court is set to decide whether Trump had the authority to issue them in the first place. Trump on Monday claimed the "full benefit" of tariff policies would take effect soon, arguing that foreign buyers who stockpiled inventory would be forced to buy more goods.
"Tariffs will be paid on everything they apply to, without avoidance, Taiwan to new investment and training of US workers in semiconductor manufacturing and other advanced industries
The president invoked the International Emergency Economic Powers Act (IEEPA) to levy blanket tariffs on goods from other countries. But Congress is the branch of the US government with oversight of taxation and spending — not the president. It's not clear when SCOTUS will make its ruling.
Meanwhile, Trump further expanded tariff breaks on Brazilian goods, part of moves to lower costs on some everyday goods as consumers grapple with price struggles.
The push to reduce food prices comes after electoral wins for Democrats across a number of key state and local races where candidates stressed affordability concerns. Trump has also in recent weeks floated the possibility of a tariff "dividend" for many Americans in the form of a $2,000 check.
Trump recently acknowledged that US consumers are "paying something" for his tariffs.
Read more: What Trump's tariffs mean for the economy and your wallet
What else to know about Trump's tariffs:
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The Trump administration is also negotiating a deal that would commit Taiwan to new investment and training of US workers in semiconductor manufacturing and other advanced industries.
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Meanwhile, friction between the US and EU continues to build as the two nations look to implement the framework agreement struck earlier this year. The EU is seeking lower tariffs on certain goods, but it rejected a demand to ease tech rules.
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Fri, November 28, 2025 at 11:08 AM UTC Jenny McCall
Trump says he may cut income tax 'completely' because of tariff income
President Trump announced on Thursday that his administration may be in a position over the next two years to slash income tax due to the revenue generated from tariffs.
The US president made the statement on a Thanksgiving video call to US military service members.
This latest move from Trump follows the idea floated in recent weeks of a tariff "dividend" for Americans in the form of a $2,000 check. It also comes on the heels of electoral wins for Democrats across several key state and local races, where candidates stressed affordability concerns.
Trump himself has said previously that the American people are "paying something" for tariffs.
Reuters reports:
- 35 mins ago Rian Howlett
Taiwan is negotiation for a drop in tariff rate from 20% to 15%
Reuters reports:
China demands Malaysia, Cambodia clarify US trade deals
The hot air of Trump’s tariffs is approaching a ceiling of cold reality
It wasn't so long ago that a social media post from President Trump would cause a flurry of excitement among multinational companies, the media, and foreign governments. However, things may have changed. Markets and investors are no longer fazed by Trump's aggressive tariffs, according to the FT's senior trade writer Alan Beattie.
The FT reports:
EU members seek safeguards in US tariff deal to protect industry
Small US retailers face holiday supply chaos due to Trump tariffs
President Trump's tariffs have created chaos for many US small businesses. When Trump threatened 180% tariffs on Chinese imports in April, small businesses scrambled to find cheaper production facilities, with many exploring Thailand. But when rates in China were cut to 20%, the alternative factories proved more costly. As a result, orders were delayed, and many businesses were left short on stock.
Reuters reports:
Swiss politicians decry ‘gold bar diplomacy’ in Trump trade deal
China’s tech giants take AI model training offshore to tap Nvidia chips
Some of China's top companies are training their AI models overseas to access Nvidia's (NVDA) chips and bypass efforts to prevent their development of the powerful technology.
Alibaba (BABA) and ByteDance are among some of the tech groups training their largest language models in data centres across south-east Asia, according to people familiar with the matter.
The FT reports:
High coffee prices are here to stay for longer despite US tariff cuts
The price of coffee is not going down anytime soon, according to Italian roaster Illycaffe SpA. Coffee lovers hoping for a quick fix with prices will have to wait a little longer as the expected pullback from a reduction in US tariffs will take some time to materialize.
Bloomberg News reports:
Read more here.
US continues to waive China import taxes on certain products for 1 year
The Trump administration announced on Wednesday that it will extend tariff exemptions on hundreds of Chinese products until November 2026, citing the new trade deal between the US and China as the reason for the extension.
What this means is that the US will continue to let certain Chinese imports skip paying taxes for one year, keeping a temporary break that was already in place due to their disputes over technology and trade secrets.
Reuters reports:
South Korea submits special bill aimed at cutting US car levies
Wed, November 26, 2025 at 9:38 PM UTC Brett LoGiurato
Canada to add new tariffs to US steel, curb imports
Bloomberg reports:
Trump says Xi ‘pretty much’ agreed to expand agricultural buys
President Trump said on Tuesday that China's leader Xi Jinping "pretty much" agreed to expand Beijing's purchase of US agricultural products.
“I think he’s going to very much surprise you on the upside,” Trump told reporters aboard Air Force One on Tuesday. “I think he’s going to — I asked him, ‘I’d like you to buy a little faster, I’d like you to buy a little more.’ And he’s more or less agreed to do that.”
Bloomberg News reports:
Trump team negotiating trade deal with Taiwan that could help train US workers
The Trump administration is in talks with Taiwan on a trade deal that would commit Taiwan to fresh investment and training of US workers in chip manufacturing and other advanced industries, according to Reuters.
Under the agreement, Taiwanese companies, such as TSMC (TSM), the world's largest contract chipmaker, would invest new capital and workers to expand their US operations — and also train US workers.
Reuters reports:
Trump moves to preserve Xi truce while reassuring ally Japan
President Trump held back-to-back calls with the leaders of China and Japan on Monday, in an effort to maintain ties with allies in Tokyo while also trying to keep the one-year trade truce with Beijing in good standing.
Trump held an hourlong conversation with China's President Xi Jinping, marking the first time the two had spoken since their countries agreed to a trade truce. Tensions between Japan and China have escalated over recent weeks due to statements made by Japan's Prime Minister Sanae Takaichi over Taiwan.
Bloomberg News reports:
USDA expects deals on farmer aid, Chinese soy buys within weeks
The Trump administration will announce an aid package for US farmers and a deal on Chinese soybean purchases within two weeks, US Agriculture Secretary Brooke Rollins said on Monday.
Reuters reports:
Vessels bound for US Gulf Coast terminals to load soybeans, sorghum for China
EU rejects demand to ease tech rules for lower steel tariffs
Bloomberg reports:
Trump, Xi speak for first time since countries agreed to trade truce
President Trump and Chinese leader Xi Jinping spoke Monday for the first time since the US and China agreed to a trade truce. Though the call touched on trade issues, Bloomberg reports the focus was on China's increased tensions with Japan over the self-governing island of Taiwan:
Lutnick says EU must change digital rules for steel tariff deal
US Commerce Secretary Lutnick has told the EU that before the US considers lowering tariffs on steel and aluminum the EU needs to change its digital regulations.
“We are talking to them about” rolling back EU tech rules, Lutnick said in an interview with Bloomberg Television. “In exchange for that, we will come up with a cool steel and aluminum deal.”
Bloomberg News reports:
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