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President Donald Trump on Sunday announced that a $2,000 tariff dividend would be paid to Americans.
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In a post on Truth Social, Trump said the payments would be for all but “high income people.”
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The president also called critics of tariffs “fools” and said the US was taking in “trillions of dollars.”
President Donald Trump on Sunday said that a dividend payment of “at least” $2,000 would be paid to most Americans from US tariff revenues.
In a post on Truth Social, he wrote: “We are taking in Trillions of Dollars and will soon begin paying down our ENORMOUS DEBT, $37 Trillion.”
“A dividend of at least $2000 a person (not including high income people!) will be paid to everyone.”
The Supreme Court is reviewing the legality of Trump’s sweeping tariffs, which he has justified under the International Emergency Economic Powers Act (IEEPA). Lower courts previously determined that many of the levies were unlawful.
The president had floated the idea of a $1,000 to $2,000 “distribution to the people” in an interview with One America News Network in October, touting tariff revenues he predicted would bring in over a trillion dollars a year.
The Treasury Department said in its September statement that it has collected $195 billion from customs duties in the fiscal year 2025.
For consumers, the idea of a dividend payout may be particularly welcome amid mounting cost-of-living pressures and the ongoing government shutdown.
But any such scheme would likely need congressional approval, and Trump has previously signaled he would prefer to use tariff revenues to tackle the national debt.
Appearing on ABC’s “This Week” on Sunday morning, Treasury Secretary Scott Bessent told host George Stephanopoulos that the administration’s goal with tariffs was to “rebalance trade” rather than to take in revenue.
Trump’s announcement is the latest salvo in a long-running political battle over affordability.
Trump had partially built his presidential campaign on the issue, repeatedly lambasting former President Joe Biden over inflation and promising to “immediately bring prices down” should he take office.
Democrats have recently turned to the same playbook.
Democratic candidates, including Zohran Mamdani, swept to victory in elections in New York City, New Jersey, and Virginia this week after running campaigns focused on cost-of-living concerns.
Mamdani, the New York City mayor-elect who Trump has branded a “communist,” had pledged to freeze rent, make childcare and buses free, and create city-owned grocery stores as part of his bid for office.
“Donald Trump, since I know you’re watching, I have four words for you: Turn the volume up,” Mamdani said in his victory speech.
Read the original article on Business Insider
