President Donald Trump on Sunday claimed that a “dividend of at least $2000 a person” will be paid to all Americans except for “high-income people,” saying the country is now wealthy as a result of his tariff policies.
The announcement comes as Trump continues to push for expanded tariffs as part of his broader “America First” trade strategy. The payments, according to Treasury Secretary Scott Bessent, could be implemented through existing tax cut legislation rather than a new program. That route would enable the administration to bypass certain legislative hurdles and utilize existing legal frameworks to distribute the funds. The idea of turning trade penalties into direct cash for citizens isn’t entirely new.
Missouri Sen. Josh Hawley previously introduced legislation supporting similar tariff-funded dividends aimed at helping working-class Americans. Trump’s proposal echoes that sentiment, positioning the tariffs as a tool to redistribute wealth from foreign trade to domestic households. But economists remain skeptical. Critics argue that tariffs often act as hidden taxes on consumers, rather than on foreign governments. While President Trump claims that other countries foot the bill, most economic experts agree that importers and, eventually, shoppers absorb the cost. Supporters praise the direct approach, while opponents question whether tariff revenue alone could sustain such a large-scale payout.
To meet the $2,000-per-person threshold nationwide, the government would need to generate hundreds of billions in tariff income or find additional funding sources.