President Donald Trump has recently thrown around the idea that many Americans might just see $2,000 each in dividend payments. He’s making this claim based on what he calls an influx of “trillions of dollars” from tariffs. Sounds intriguing, doesn’t it?
He expressed his thoughts on Truth Social, saying, “Those who oppose tariffs are simply misinformed. The U.S. is the richest and most respected nation on Earth, capturing trillions in revenue and even starting to tackle our massive debt. Investments are booming here, with factories popping up everywhere.” He also mentioned, “We’re planning to distribute at least $2000 to each eligible person—not counting those with high incomes.”
Trump reaffirmed his stance just yesterday, excitedly sharing with his 11 million followers on Truth Social that “any leftover funds after doling out the $2000 payments” would help to reduce national debt.
This isn’t exactly the first rodeo for Trump regarding direct support payments. He’s hinted at giving stimulus checks or some sort of tax rebate to regular Americans from tariff revenue in the past, but no actual action has been taken just yet by his Administration.
What’s Trump Proposing and Where’s the Money Coming From?
So, what’s the actual proposal? Trump’s idea points to a $2,000 payment to most Americans, excluding the “high-income” bracket—though he’s a bit vague on what “high-income” actually means.
The cash would supposedly flow from the revenues collected through Trump’s global tariffs, which have stirred quite a bit of debate since their rollout, labeled fittingly as “Liberation Day” earlier this year.
He mentioned that tariffs could also help pay down the national debt, which is sitting over $38 trillion according to Holdings at the Treasury.
Recently, during an ABC News appearance, Treasury Secretary Scott Bessent admitted he hadn’t spoken with Trump about this latest payment idea yet. He speculated that this $2,000 could manifest in several ways—like tax breaks on overtime, Social Security, auto loan deductions, etc., which were all part of Trump’s agenda.
Has Trump Brought Up This Idea Before?
Believe it or not, Trump has floated this money idea before! Back in late July, he casually mentioned to journalists, “We’re getting a lot of cash from tariffs; a little rebate for eligibility-based households might be worth exploring.”
Then, just a week later, he expanded that thought, hinting that there could be a handout from those tariff earnings for middle and lower-income individuals.
Again, a similar discussion arose on Oct. 1 during an interview with One America News. Trump reiterated how tariff funds could aid in tackling the national debt while also venturing into potential dividend distributions ranging from $1,000 to $2,000.
What Concerns Do Experts Have?
On the flip side, experts are raising some red flags regarding how feasible these dividend payments would actually be. Delivering such payments to lower and middle-income households might mean reaching over 80% of Americans—around 274 million individuals, based on past studies.
Erica York, from the Tax Foundation, cautioned that this may be a costly endeavor. “Proposing a $2,000 dividend for folks below a certain income amount could cost around $300 billion, assuming approximately 150 million adults qualify, especially if we include children,” she tweeted.
She added that accounting for the broader financial impacts, tariff income offsets other forms of tax revenue, transparency remains elusive.
What’s the Current Situation with Trump’s Tariffs?
As it stands now, Trump’s tariffs are under scrutiny by the Supreme Court, with various justices expressing concerns over how these import duties have been defended. Recent oral arguments saw some wavering opinions on the origins and justification of these policies.
Contact us at letters@time.com.
