Donald Trump doubles down on tariffs, tax cuts, and immigration in first address to Congress

US President Donald Trump delivered his first address to Congress since returning to the White House, using the high-profile speech to claim victory for his aggressive policy changes and to defend his administration’s sweeping reforms.

Speaking before a joint session of Congress on Tuesday night, Trump struck a triumphalist tone, painting his first 43 days in office as a period of rapid, necessary change while lashing out at Democrats who remain staunchly opposed to his administration.

“America is back,” Trump said, lifting a phrase used by his predecessor, Joe Biden, in international speeches.

The chamber erupted into chants of “USA! USA!” as Trump entered, setting the tone for what became a highly partisan address. Throughout his remarks, the president relished recounting his election victory, dismissed Democratic criticisms, and sought to reassure Americans about his administration’s policy shifts, particularly on trade, immigration, and foreign policy.

A sharp rebuke to Democrats

Some Democrats held up signs that read “False” in bold white lettering as the US president made several claims during his speech.

Trump made little effort to reach across the aisle, instead chiding Democrats for failing to recognise what he sees as his administration’s achievements.

“It’s very sad, and it just shouldn’t be this way,” he said, criticising Democratic lawmakers who refused to stand and applaud during key moments of his speech.

He also derided what he called the “weaponisation” of the government under Biden, referring to the multiple criminal prosecutions he faced during his time out of office.

“We’ve ended weaponised government where, as an example, a sitting president is allowed to viciously prosecute his political opponent like me. How did that work out?” Trump said.

Trade war to escalate

Trump dedicated significant portions of his speech to defending his controversial trade policies, which have sent shockwaves through global markets. The stock market has seen steep declines since he imposed tariffs on Canada and Mexico, as both nations retaliated with their own economic measures. The new trade war has sparked concerns over inflation and rising consumer costs in the US.

Trump, however, dismissed the concerns, insisting tariffs were essential for America’s economic strength.

“Tariffs are about making America rich again and making America great again,” Trump said. “And it’s happening, and it will happen rather quickly. There will be a little disturbance, but we’re okay with that.”

He announced that reciprocal tariffs—which impose the same trade duties on foreign countries as they impose on American goods—will take effect starting April 2. Trump specifically called out India for its high tariffs on American automobiles, saying the US would respond in kind.

“Other countries have used tariffs against us for decades and now it's our turn to start using them against those other countries,” Trump said.

"On average, the European Union, China, Brazil, India, - Mexico and Canada - Have you heard of them -and countless other nations charge us tremendously higher tariffs than we charge them. It's very unfair,” Trump said Tuesday night in an address to the Joint Session of the Congress, the first of his second term in the White House.

"India charges us auto tariffs higher than 100%," he continued.

Immigration overhaul and tax proposals

Among his most controversial proposals, Trump hailed what he called a “gold card” program, which would allow wealthy immigrants to obtain US citizenship by investing at least $5 million in the country. The policy is set to replace an existing investor visa program that requires a $1 million investment in job-creating businesses.

“For $5 million, we will allow the most successful job-creating people from all over the world to buy a path to US. citizenship. It’s like the green card, but better and more sophisticated,” Trump said.

The proposal was immediately criticised by immigration restrictionist groups, which accused Trump of creating a system that prioritises wealth over merit-based immigration.

Trump proposed a series of cuts, including eliminating taxes on tips, overtime, and Social Security benefits.

“We are seeking permanent income tax cuts all across the board and to get urgently needed relief to Americans especially hit hard by inflation. I am calling for no tax on tips, no tax on overtime, and no tax on social security benefits,” Trump said.

He also announced plans to make interest payments on car loans tax-deductible, but only if the car is made in America.

“And by the way, we are going to have growth in the auto industry like nobody has ever seen; plants are opening up all over the place, deals are being made, and that is a combination of election wins and tariffs,” the US president said.

Trump also promised a 100% tax deduction for domestic manufacturing expenses, a move he claimed would reignite America’s industrial sector.

“In addition, as part of our tax cuts, we want to cut taxes on domestic production and all manufacturing, and just as we did before, we will provide 100% expensing; it will be retroactive to January 20, 2025, and it was one of the main reasons why our tax cuts were so successful in our first term, giving us the most successful economy in the history of our country,” he said.

Ukraine

Trump concluded his speech by revealing that he had received a letter from Ukrainian President Volodymyr Zelenskyy indicating Ukraine’s readiness to negotiate peace with Russia.

“The letter reads: Ukraine is ready to come to the negotiating table as soon as possible to bring lasting peace closer,” Trump said. “Nobody wants peace more than the Ukrainians.”

The remarks followed Trump’s decision to order a “pause” in US assistance to Ukraine earlier this week, a move widely seen as an attempt to pressure Zelenskyy into negotiations with Moscow.

Trump’s tough stance on Ukraine has been a major shift from the Biden administration’s unwavering support for Kyiv. His rhetoric on the issue has sparked criticism from both Democratic and moderate Republican lawmakers, who argue that reducing aid to Ukraine could embolden Russian aggression.

A partisan showdown

The speech highlighted the deep divisions in Washington. Republicans frequently rose to their feet in applause while Democrats jeered, with Rep. Rashida Tlaib holding up a whiteboard with messages such as “That’s a lie!” during Trump’s remarks on the economy.

Throughout his speech, Trump repeatedly blamed Biden for economic woes, including rising food prices and inflation.

“As you know, we inherited from the last administration an economic catastrophe and an inflation nightmare,” Trump said. “We suffered the worst inflation in 48 years, but perhaps even in the history of our country.”