President Donald Trump suggested Sunday that his sweeping tariffs would help him reduce income taxes for people making less than $200,000 a year, as public anxiety rises over his economic agenda.Trump has previously argued that tariff revenue could replace income taxes,

The developments came as China has struck a publicly defiant tone and Trump sowed confusion by claiming that he had spoken with Chinese President Xi Jinping, which Beijing denied.

Trump also has expressed interest in preserving and expanding the tax cuts passed during his first term, many of which are set to expire at the end of the year. His proposals include exempting workers’ tips and Social Security earnings from taxation and cutting the corporate tax rate further to 15% from 21%.