Trump proposes replacing U.S. income tax with import tariffs.

• Sources informed CNBC that Donald Trump considered implementing a "total tariff policy" which could potentially lead to the elimination of the U.S. income tax.
• Another source in the room stated that Trump discussed employing tariffs as a tool to strengthen his bargaining position against uncooperative parties.
• Trump championed tariffs during his first term in the White House.

Sources in a private meeting with Donald Trump on Thursday revealed that he proposed an "all tariff policy" that could potentially eliminate the U.S. income tax.

In the meeting with GOP lawmakers at the Capitol Hill Club in Washington, D.C., Trump discussed using tariffs as a bargaining tool against bad actors, according to a source present in the room.

Trump, who supported tariffs as a foreign policy instrument during his first term, may adopt a more protectionist trade strategy if he wins the election against Biden in November.

Trump's campaign spokespeople did not respond to CNBC's requests for comment, and Trump later posted on Truth Social that there was "lots discussed, all positive" in the meeting without providing further details.

Trump's remark about replacing income taxes with tariffs quickly drew critics.

Professor David Kamin of New York University School of Law stated that replacing tariffs with income tax would negatively impact low and middle income Americans while benefiting the top earners.

Trump's visit to Capitol Hill to meet with GOP lawmakers and executives signified his first trip back to the area since January 6, 2021, when he encouraged his followers to march to the U.S. Capitol to demonstrate against his 2020 defeat to Biden.

The House impeached Trump for inciting the violent mob that attacked the Capitol and disrupted the peaceful transfer of power.

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