US President Donald Trump made a big announcement on his Truth Social account on Sunday. “People that are against Tariffs are FOOLS! … A dividend of at least $2000 a person (not including high income people!) will be paid to everyone,” he wrote.
He repeated the claim at the Oval Office the next day, “We are going to issue a dividend to our middle-income people and lower-income people of about $2,000 and we are going to use the remaining tariffs to lower our debt, we are going to be lowering our debt, which is a national security thing,” Donald Trump said, as per USA Today.
So, are Americans really set to receive $2,000 from the government? Here are all the key questions answered.
Can the US president issue such dividends?
This isn’t the first time Donald Trump has talked about giving direct financial benefits to citizens.
As per USA Today, he had previously suggested transferring money saved through cuts initiated by the Department of Government Efficiency (DOGE) to Americans. However, nothing came of that announcement.
Importantly, the president cannot directly issue financial rewards to people. The ‘power of the purse’ lies with Congress. During the COVID-19 pandemic, Congress passed the resolution to provide stimulus checks to the people, and Trump, then in his first term, merely had to sign off on the decision.
Is $2,000 dividend financially feasible?
The Committee for a Responsible Federal Budget estimates that issuing $2,000 checks as tariff rebates would cost the federal government $600 billion annually. Tariff revenues are projected to generate only about half that amount. In short, the math doesn’t add up, USA Today reports.
A similar proposal by Republican Senator Josh Hawley, to issue $600 per person, was sent to the Senate Finance Committee, but didn’t go any further. So, analysts caution that Americans shouldn’t get their hopes too high about receiving a $2,000 cheque anytime soon.
Legality of Donald Trump’s tariffs under legal scrutiny
Donald Trump’s ‘dividends’ proposal comes as his tariff policy faces a legal challenge. According to The Hill, the Supreme Court is reviewing whether the president has the authority to impose high tariffs on imports from certain countries.
The publication reports that similar challenges were filed in the lower courts, but they paused their proceedings when the matter came up for review in the Supreme Court. If these tariffs are declared illegal, it could lead to a messy situation where the government might have to issue refunds to several small businesses that have filed the challenge.
“I’m going to hope that we win,” Trump said on Thursday, according to The Hill. “I can’t imagine that anybody would do that kind of devastation to our country.”
The case hinges upon the president’s powers to impose high tariffs on other countries. There are several sections of the Trade Act and Tariff Act, The Hill reports, which the president could cite to make the case for his authority. However, if the Supreme Court deems the imposition of these tariffs illegal, it would create a great setback for the current administration.
FAQs
How much did US President Donald Trump propose to pay lower- and middle-income Americans as a tariff dividend?
Donald Trump has proposed to pay $2,000 to lower- and middle-income Americans as a tariff dividend.
Can the US President Donald Trump issue such tariff rebates?
No, the US president cannot issue such tariff rebates because Congress must pass a resolution to authorize them.
Which court is hearing the case on the legality of Trump’s tariffs?
The Supreme Court is hearing the case on the legality of Trump’s tariffs.
