Nationwide — President Donald Trump announced Sunday that his administration plans to distribute at least $2,000 per person to Americans using revenue generated from tariffs collected on foreign imports. Writing on his Truth Social platform, the president said, “A dividend of at least $2,000 a person (not including high-income people!) will be paid to everyone,” while adding that opponents of his tariff policy are “FOOLS!”
The proposal, which has not yet been formally outlined by the White House, would likely require congressional approval. Earlier this year, Sen. Josh Hawley (R-Mo.) introduced legislation to provide $600 tariff rebates to most Americans and their dependents, arguing that citizens should share in the benefits of increased tariff revenue. “My legislation would allow hard-working Americans to benefit from the wealth that Trump’s tariffs are returning to this country,” Hawley said at the time.
Treasury Secretary Scott Bessent said in August that the administration’s primary focus remains on reducing the federal deficit, noting that tariff collections would be used in part to pay down the $38.12 trillion national debt. Trump reiterated on Sunday that his administration intends to use tariff revenue to address what he called the nation’s “ENORMOUS” debt, though he did not clarify how the potential payments to Americans would fit into that effort.
The Hill reported that it has reached out to the White House for additional details about the president’s plan, including how the proposed direct payments would be distributed and whether income limits would apply. The administration has not yet released a formal policy document or timeline.
According to the Treasury Department’s September statement, the U.S. government collected $195 billion in tariff duties during the first three quarters of the year. That represents a significant increase from previous years, reflecting the administration’s broad tariffs imposed in April on a wide range of imported goods from major trading partners, including China, Mexico, and the European Union.
However, economists note that tariff hikes often lead to higher prices for consumers. The Yale Budget Lab reported that, as of October 17, the average effective tariff rate reached 18 percent—the highest level since 1934. Businesses affected by the tariffs have passed along some of those costs to customers, raising questions about how the proposed “tariff dividend” might offset the broader impact on consumer prices.