President Donald Trump said most countries want to maintain trade agreements with the United States even after the Supreme Court ruled reciprocal tariffs unconstitutional. He signaled significant tariff pressure ahead, stating that future tariff levels would replace income taxes as the administration pursues tax cuts.
"It was a very unfortunate ruling," Trump said of the reciprocal tariff decision during his State of the Union address at the U.S. Capitol on Wednesday. "The good news is that almost every country and company wants to keep the agreements already in place."
He added that other countries "will invest trillions of dollars in the United States."
Trump noted that foreign nations "know I have the legal authority as president to make new deals that could be much worse for them."
"Over time, tariffs paid by other countries will substantially replace our current income tax system, just as in the past," Trump emphasized. He pledged no tax increases to strengthen social security and announced deductions in the taxation process for all American-made goods.
Throughout the speech, Trump highlighted efforts to stabilize inflation and reduce living costs, including gasoline prices and mortgage rates. He specifically addressed data centers, which consume massive amounts of electricity and contribute to power shortages and higher utility bills. Trump promised that companies using these facilities would generate their own power, helping local communities and shielding ordinary citizens from the burden.
Trump also called for harsh penalties for illegal stock trading using insider information. "I will stop stock trading based on congressional inside information," he said. In a rare moment, Democratic lawmakers who had remained seated stood and applauded alongside Republicans.
He criticized the Affordable Care Act, saying "Obamacare only enriched insurance companies," and vowed to "actually help the people by lowering prescription drug prices."
Trump emphasized punishment for illegal immigration, prompting protests from Democratic members that created a chaotic atmosphere. He showcased victims of crimes committed by undocumented immigrants and beneficiaries of various social security policies to promote his agenda.
The president welcomed the U.S. men's hockey team, which defeated Canada at the 2026 Milan-Cortina Winter Olympics, drawing enthusiastic applause. The move appeared aimed at Canada amid escalating tensions between the two nations. Democratic lawmakers joined in the standing ovation, and attendees chanted "USA."