WASHINGTON — President Donald Trump is pitching a new plan to help Americans deal with rising costs: $2,000 rebate checks funded by the tariffs his administration has collected.
“People that are against Tariffs are FOOLS!” Trump wrote Sunday on Truth Social. “A dividend of at least $2000 a person (not including high income people!) will be paid to everyone.”
It’s a bold idea — and one filled with major challenges.
💸 What Trump Is Proposing
This isn’t the first time Trump has floated the idea of sharing tariff money with the public. Back in August, he hinted that Americans could get “a dividend” from the billions collected through tariffs on imported goods.
Technically, U.S. importers pay the tariffs, but those costs often get passed down to consumers through higher prices. Trump’s new plan resembles the pandemic-era stimulus checks, except these payments would come from tariff revenue, not taxpayer funds.
🏛️ What the Treasury Is Saying
Trump’s Treasury Secretary, Scott Bessent, wasn’t ready to commit. Speaking on ABC’s This Week, he said no formal plan has been submitted and hinted that Trump’s proposed $2,000 could come in different forms — possibly as tax breaks for tips, overtime, or Social Security benefits instead of direct checks.
💰 Is There Even Enough Money?
Since Trump took office again, his administration has collected about $220 billion in total tariff revenue, according to the U.S. Treasury.
Here’s the problem: there are about 163 million taxpayers in America. Sending each of them $2,000 would cost roughly $326 billion — far more than what’s available.
Even if high-income Americans are excluded — say, anyone making over $100,000 — the cost would still hover around $300 billion, according to the Tax Foundation’s Erica York.
Despite the math, Trump insists there would be enough left over to “SUBSTANTIALLY PAY DOWN NATIONAL DEBT,” which is nearing $40 trillion.
“The massive Tariff Income pouring into our Country… will be used to pay down national debt,” he posted Monday on Truth Social.
The White House hasn’t clarified who would qualify for the payments, only saying the administration is “committed to putting this money to good use for the American people.”
⚖️ Legal and Supreme Court Hurdles
There’s another snag: the Supreme Court is currently reviewing Trump’s use of emergency powers to impose certain tariffs — a move that accounts for about $100 billion of the total revenue.
If the court strikes that down, much of that money could have to be returned to businesses, shrinking the pool of cash available for any rebate checks.
🏛️ Can Trump Actually Do This Alone?
Almost certainly not.
Congress controls federal spending, meaning Trump can’t simply sign off on rebate checks without Congressional approval — just as previous stimulus payments required new legislation.
💥 Would Congress Go For It?
Probably not. While stimulus checks have been politically popular in the past, they were used during economic crises, not during periods of moderate growth and high inflation.
Economists warn that sending billions directly to households right now could fuel inflation and push the Federal Reserve to raise interest rates again — something that could hurt Trump politically among fiscal conservatives.
⏳ When Would Checks Arrive?
Even if Congress signs off, don’t expect the money fast.
During the pandemic, direct deposit payments arrived within a week. But those waiting for paper checks had to wait up to five months.
So while Trump’s latest promise of $2,000 “tariff dividend” checks might sound appealing, Americans shouldn’t count on seeing that cash anytime soon.
