Former President Donald Trump announced last Sunday that most Americans will receive at least $2,000 from the tariff revenues collected by his administration.
Trump’s statement, made on his platform Truth Social, came shortly after the White House defended his extensive use of tariffs before the Supreme Court last week, where justices appeared skeptical of the president’s broad application of the International Emergency Economic Powers Act (IEEPA).
The announcement of $2,000 payouts from tariff revenues followed Democratic victories in last week’s nationwide elections. According to The Hill, here’s what you need to know about Trump’s proposal:
What Did Trump Say?
Trump praised the benefits of his tariffs on Sunday morning, calling those who oppose them “fools.” He said that the revenue from import duties on foreign goods would soon begin paying down the national debt and “put money directly into people’s pockets.”
On Truth Social, Trump wrote:“Tariff opponents are fools! We are now the richest and most respected nation in the world, with almost zero inflation and record-high stock market levels. Retirement savings (401k) are the highest ever.”
He added:“We are earning trillions of dollars and will soon begin paying off our massive $37 trillion debt. Record investments are pouring into the United States, and factories are booming everywhere. Dividends of no less than $2,000 per person (except for high-income individuals) will be distributed to everyone.”
In a follow-up post, Trump continued:“We’re going to do something, we’re studying it. First, we’ll pay the debt — because people have allowed it to grow out of control. We’ll pay the debt, but we may also distribute dividends to the American people.”
Treasury Secretary’s Response
In an interview Sunday on ABC News’ This Week, Treasury Secretary Scott Besant told host George Stephanopoulos that he had not yet spoken with Trump about the proposal. However, he noted that “$2,000 dividends could come in many forms,” not necessarily as direct stimulus checks.
Besant explained:“It could take the form of tax cuts seen in the president’s agenda — no taxes on tips, no taxes on overtime, no Social Security taxes, and maybe even deductions for car loans. These are major cuts funded through the new tax bill.”
Who Qualifies for the Dividends?
Trump did not specify who would qualify for the payouts, though he said “everyone,” except “high-income individuals,” would receive at least $2,000.
The White House and Treasury Department did not clarify the income thresholds or whether children would be eligible. The administration also has not specified the total cost of the proposed payouts.
Historical Context: Stimulus Checks During the Pandemic
During the COVID-19 pandemic, Congress approved three rounds of stimulus checks. Trump signed two of them into law during his first term:
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First round (March 2020): $1,200 per taxpayer and $500 per child
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Second round (December 2020): $600 per taxpayer and $600 per child
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Third round (March 2021, signed by Biden): $1,400 per taxpayer, or $2,800 for couples, plus $1,400 per dependent
Under Trump’s two stimulus rounds, individuals earning up to $75,000 and couples earning up to $150,000 were eligible for full payments, with reduced amounts for higher incomes.
The IRS reported that over 476 million payments, totaling $814 billion, were issued as financial relief during the pandemic.
How Much Revenue Do Tariffs Generate?
In his ABC News interview, Secretary Besant emphasized that the tariffs’ primary goal is not to raise revenue — a function reserved for Congress — but to address what the administration views as unfair trade imbalances.
He said:“It’s not about revenue collection, it’s about rebalancing. The revenue comes first, then with restored balance and returning jobs, you see domestic tax revenues rise.”
Still, tariffs have generated billions of dollars. As of September, the U.S. government collected $195 billion in tariff revenues — a 250% increase, or $118 billion more than the previous year (fiscal 2024).
According to Treasury data, tariff revenues are projected to generate nearly $3 trillion over the next decade.