Fact-checkers catch Trump's 'fantasy' claims in real time

President Donald Trump was fact-checked in real time on Tuesday night when he falsely claimed during his State of the Union address that tariffs could replace the income tax.

“I believe that tariffs paid for by foreign countries will, like in the past, substantially replace the modern day system of income tax,” Trump claimed during a key moment in his speech, prompting the progressive think tank American Bridge 21st Century to point out that “American families and businesses paid at least 90% of Trump’s tariffs last year. His agenda taxes Americans anyway you slice it.”

Others reinforced the think tank’s assertion.

“After a fairly sober opening, Trump is now veering into fantasy, falsely claiming that he ended taxes on Social Security and suggesting that tariffs paid by foreigners will mostly replace the income tax,” Nicholas Kristof of The New York Times posted on X. “All false.”

Quartz’s Joseph Zeballos-Roig further elaborated on the dishonest nature of Trump claiming his tariffs were anywhere close to being ready to replace income taxes.

“Trump is promoting his signature tariffs that the Supreme Court knocked down last week,” Zeballos-Roig posted. “Costco, Fedex, Goodyear among the companies suing for refunds. At least $134 billion in revenue in limbo. Tells Congress he doesn't need them: ‘Congressional action will not be necessary.’”

Citing studies from the Federal Reserve Bank of New York and a think tank called the Tax Foundation, CNN’s Daniel Dale tweeted that “US importers, not foreign countries, make the tariff payments to the US government. And study after study, in both of Trump’s presidential terms, found US businesses and consumers are bearing the overwhelming majority of the costs of his tariffs.”

Quoting the Federal Reserve report, Dale pointed out that almost 90 percent of the 2025 tariffs’ economic burden fell on American businesses and consumers. The Tax Foundation, meanwhile, found that “the Trump tariffs amount to an average tax increase per US household of $1,000 in 2025 and $1,300 in 2026.”

Democratic legislators attending Trump’s speech likewise fact-checked the president in real time.

“Tariffs are a national sales tax in disguise; one that punishes the poor, protects the rich, and shifts the cost of government onto the backs of working families,” wrote Rep. Jonathan L. Jackson (D-Ill.) “Trump wants to force poor people to pay down the deficit while the rich buy new jets and spaceships.”

He was not alone in pointing out that Trump is disguising his tariffs as taxes.

“Reminder: Trump’s tariffs are the largest tax hike in history—costing American families an average of $1,745 over the last year,” wrote Rep. Jim McGovern (D-Mass.) “His tariffs are a tax. You pay for them.”

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