In a recent social media post, President Donald Trump proposed a $2,000 "dividend" for every American, funded by tariffs.
This announcement follows the Supreme Court's scrutiny of his use of emergency powers to impose extensive new tariffs on almost every country worldwide.
"Everyone will receive a dividend of at least $2000 per person (not including high-income individuals!)," Trump posted on Truth Social, as reported by The New York Post. However, he did not provide specifics on eligibility or the timeline for these payments.
Scott Bessent, the Treasury Secretary, clarified on ABC's "This Week" that these tariff dividends might not necessarily be direct payments. "The $2,000 dividend could take many forms. It could be the tax decreases we are witnessing," Bessent explained.
Trump further asserted that the tariffs have generated "trillions of dollars" and that 401(k) accounts are at their "highest ever." He also dismissed any inflationary impact from the duties, stating, "People that are against tariffs are fools!"
According to the Committee for a Responsible Federal Budget, the US collected approximately $151 billion from import duties between April and October. Bessent anticipates that the US will garner $500 billion or more in tariff revenue annually.
For comparison, a pandemic-era proposal to distribute $2,000 checks to families was projected to cost around $464 billion, as per the CRFB. It remains uncertain whether Trump's tariff dividend would follow the same guidelines as the COVID-19 relief measures.
Trump's recent contemplation of tariff dividends coincides with Democratic victories in blue state elections, where affordability issues were a significant concern. However, GOP lawmakers have shown little enthusiasm for authorizing direct payments to Americans. "It'll never pass," Republican Sen. Bernie Moreno (R-Ohio) candidly told reporters in July, citing the country's $37 trillion debt.
The Supreme Court's recent tariff case, attended by Bessent, saw conservative justices questioning a lawyer for the Trump administration. This questioning raised concerns that the court might reject Trump's "reciprocal" and "trafficking" tariffs. The tariffs in question were imposed through the International Emergency Economic Powers Act (IEEPA), which accounted for about $90 billion of the roughly $151 billion in tariff revenue during fiscal year 2025.
If the Supreme Court rules against Trump's use of IEEPA, his team could potentially explore other options, such as Section 301 of the Trade Act of 1974. However, these alternatives are more complex and could also face legal challenges. Furthermore, a loss in the tariff case could force the Trump administration to issue refunds for the collected tariffs.
Trump has also leveraged IEEPA tariffs in negotiations with other countries, including efforts to end foreign wars. A verdict in the tariff case is expected by the end of next June. Trump has other tariffs in place, targeting steel, aluminum, automobiles, and more, which are not implicated in the case before the Supreme Court.
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