Inflation is a reality in today’s economy, and with regard to the national debt, President Donald Trump is once again bringing the Tariff Dividend debate to the table, in light of the $2,000 checks that are the latest economic stimulus measure in the United States. Since the plan was announced on Truth Social, import tariffs and the changes made through the One Big Beautiful Bill are its main support. On behalf of the Treasury Department, Scott Bessent states that tax revenues will indeed be impacted by this new proposal. Read on to learn more about this new direction in U.S. economic policy.
New Trump’s unique solution
As the country’s affordability problems increases, the president has again presented a exclusive solution in the form of tariff rebate checks. Nowadays, the administration has raked in hundreds of billions in revenue from tariffs, takin into account import taxes just imposed by Trump as well as tariffs in place before he took office.
As Americans fight with inflation and the high cost of living, the president has floated the idea of putting this money back into consumers’ pockets by sending out $2,000 tariff dividends.
What the president wanted to share
Trump expressed his concepts for the tariff rebate on Truth Social over the weekend, defending the import taxes after eyebrows were increased over their legality at the time of the Supreme Court hearing on Wednesday.
“People that are against Tariffs are FOOLS! We are now the Richest, Most Respected Country In the World, With Almost No Inflation, and A Record Stock Market Price,” began the president, adding that the US was “taking in trillions of dollars” thanks to the tariffs.
In addition, he said that a dividend of at least $2,000 per person would be paid to all, not including Americans with high incomes. Usually, rebates and stimulus payments are issued via the tax code, needing Congress to pass recent laws giving the Treasury Department permission to send checks.
The main question: are the $2,000 check feasible?
Several Americans are expecting that Trump’s promised tariff dividends will be delivered in the form of $2,000 checks rather than just tax breaks. Nevertheless, many remain skeptical considering that the $5,000 DOGE stimulus checks proposed at the begining of this year were abandoned, with no news related to the payments for months.
Other preocupations include the fact that the legality of the tariffs themselves is now being debated by the Supreme Court, with judges questioning Trump’s use of emergency powers to impose tariffs. In addition, the $2,000 checks would probably need to be approved by Congress first.
People that are against Tariffs are FOOLS! We are now the Richest, Most Respected Country In the World, With Almost No Inflation, and A Record Stock Market Price. 401(k)’s are Highest EVER. We are taking in Trillions of Dollars and will soon begin paying down our ENORMOUS DEBT, $37 Trillion. Record Investment in the USA, plants and factories going up all over the place. A dividend of at least $2000 a person (not including high income people!) will be paid to everyone.” President Donald Trump, Truth Social
Trump argues that there will be enough money
Since being in office, Trump’s administration has pulled in over $220 billion in tariff revenue, per the US Treasury. Handing out $2,000 checks to the roughly 150 million Americans making $100,000 or less would require around $300 billion in revenue, Erica York, vice president of federal tax policy at the Tax Foundation, wrote in an X post.
The president, on the other hand, has argued that there will be enough money left over after the tariff rebate checks are distributed to help pay off the country’s roughly $37 trillion in debt.
“All money left over from the $2000 payments made to low and middle income USA Citizens, from the massive Tariff Income pouring into our Country from foreign countries, which will be substantial, will be used to SUBSTANTIALLY PAY DOWN NATIONAL DEBT,” Trump wrote on Truth Social on Monday morning.
Back at the time of the pandemic, those who decided to receive their stimulus checks through direct deposit saw the money in their accounts within around one week of the first stimulus package passing. Americans who opt for get paper checks, on the other hand, did not receive their money for about 20 weeks.