President Donald Trump once again floated the idea of issuing rebate checks to Americans funded by the hundreds of billions of dollars in tariff revenue imposed by his administration.
‘A Dividend’ To The People of America
On Thursday, Trump said the government has already taken in hundreds of billions of dollars from tariffs imposed on foreign nations since April. “They're just starting to kick in,” he said, adding that “ultimately, your tariffs are going to be over a trillion dollars a year,” in an interview with One America News Network.
When asked about what he intends to do with all this money, Trump said that his priority is paying down the nation’s massive debt.
See Also: Trump’s 100% Drug Tariff Will Hit Americans, Economist Says Buyers ‘Eat The Cost,’ Not Foreign Firms
“Number one, we're paying down debt,” he said, while adding that the $37 trillion national debt is “very little, relatively speaking” because tariff collections are reaching unprecedented levels, according to a report by the New York Post.
“With that being said, we'll pay back debt, but we also might make a distribution to the people,” Trump said. He described the plan as “a dividend to the people of America.”
“We're thinking maybe $1,000 to $2,000 – it would be great,” Trump said, amid a government shutdown, after the Senate failed to pass a continuing resolution late Tuesday.
This comes despite warnings by several prominent experts, who continue to reiterate that it is consumers who “eat the cost” of the tariffs, and not foreign firms. So, in essence, the tariffs are paid by American importers and consumers.
Experts Criticize Tariff Rebate Plan
Trump has floated this idea several times in the past, having said in late July that his administration was planning a rebate, aimed at “people of a certain income level.”
The plan has been criticized by several prominent experts, with investor Kevin O’Leary saying that tariff revenue should go towards paying down the nation’s debt. “No. I tell you the idea I like — and I think every taxpayer likes better than this idea — use any excess capital to reduce the national debt,” O’Leary said in July.
Last week, economist Peter Schiff pushed back against this idea of returning tariff revenue back to consumers, calling it “One of the dumbest ideas.” He added that “If Republicans want taxpayers to have the tariff revenue, then don't impose tariffs on them in the first place.”
Read More:
Photo Courtesy: Joey Sussman on Shutterstock.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
