UPDATE: President Donald Trump has just announced a bold proposal to send Americans a check for $2,000, claiming it would be funded by revenues from tariffs. This unexpected move comes amid Trump’s escalating disapproval ratings, which have reached a staggering 63% according to a recent CNN/SSRS poll.
In a post on Sunday, Trump declared, “A dividend of at least $2000 a person (not including high-income people!) will be paid to everyone.” He further criticized opposition to tariffs, labeling those against them as “FOOLS!” The announcement raises significant questions about the feasibility and implications of such financial relief.
Trump’s proposal is not entirely new; he has suggested similar ideas before, yet none have materialized. The President’s earlier discussions about stimulus checks based on tariff revenues have failed to gain traction, primarily due to legal and budgetary constraints. The Treasury Department reported that nearly $200 billion in customs duties have already been collected during Trump’s administration, with American consumers facing an effective tariff rate of almost 18%, the highest in nearly a century.
For these checks to be issued, Trump will need congressional approval, a challenging hurdle given the current political climate. Earlier this year, Republican Senator Josh Hawley introduced a bill proposing $600 checks funded by tariff rebates, which was ultimately sidelined by Treasury Secretary Scott Bessent, who stated that tariff revenue would instead be used to reduce the national deficit.
Economists are voicing skepticism about the viability of Trump’s proposal. Erica York, vice president of federal tax policy at the Tax Foundation, highlighted that distributing $2,000 to Americans could exceed the total revenue generated from tariffs. “If the cutoff is $100,000, 150 million adults would qualify, for a cost near $300 billion,” she noted. This raises critical concerns about the economic implications of such a plan.
As the November elections approach and with Trump’s approval ratings waning, this announcement may be a strategic attempt to rally support among voters. Trump asserted that the U.S. is “the Richest, Most Respected Country In the World” and cited a record stock market, framing the proposed checks as a benefit to hardworking Americans.
With the nation watching closely, the discussion surrounding these potential payments is evolving rapidly. What happens next could significantly influence the political landscape and the economic wellbeing of millions of Americans.
Stay tuned for updates as this story develops.
