Trump Considers $2,000 Rebates from Tariff Revenue
On Thursday, President Donald Trump mentioned he is still weighing the idea of providing American citizens with rebates of up to $2,000, funded by the revenues from tariffs on imports.
Since taking office, the Trump administration has eliminated certain “liberation date” tariffs on imports while imposing new taxes on materials like steel, aluminum, copper, and, more recently, even pharmaceuticals. It turns out, the federal government has collected about $214.9 billion in tariff revenue this year. Trump suggested this amount could eventually exceed $1 trillion annually.
“We’re probably thinking about $1,000 to $2,000—that’s great,” Trump commented, describing it as “like a dividend to the American people.”
Despite this proposal, he made it clear that his primary focus is on addressing the national debt, which stands at around $37 trillion, according to the Treasury Department.
“Number one, we’re paying off our debts because we can’t let them spiral out of control,” he stated.
The White House has not provided a comment regarding requests for clarification on this plan.
As discussions about the legality of tariffs are expected to take place in November, the proposal for rebates arises. Earlier this month, the U.S. Federal Circuit Court of Appeals determined that the administration had exceeded its authority in imposing certain taxes under the International Emergency Economic Powers Act. However, the taxes will remain in place until October 14.
The current tariffs on goods are not being legally contested since they are imposed under section 232 of the Trade Expansion Act, aligning with precedents set by previous administrations. Trump has previously floated the idea of rebates, but such financial distribution would need approval from Congress, which complicates its feasibility given the current political landscape. Senator Josh Hawley of Missouri has introduced legislation proposing tariff rebate checks of at least $600 per adult and child.
In late September, Trump mentioned plans to allocate some of the tariff revenue to support farmers financially.
