UPDATE: President Donald Trump has just announced a controversial proposal to send Americans a check for $2,000, claiming it would be funded by tariff revenues. This assertion comes amid troubling 63% disapproval ratings for the president, as he seeks to regain support ahead of the upcoming elections.
In a bold Truth Social post on October 29, 2023, Trump stated, “A dividend of at least $2,000 a person (not including high-income people!) will be paid to everyone.” He further declared, “People who are against tariffs are FOOLS!” This is not the first time Trump has floated such an idea; he previously proposed similar checks on at least two occasions during his presidency, none of which materialized.
The proposal raises significant questions about its feasibility, as it would require approval from Congress. In fact, earlier this year, Republican Senator Josh Hawley introduced a bill proposing a $600 check using tariff rebates, which was ultimately set aside by Treasury Secretary Scott Bessent, who indicated that tariff collections would instead go toward reducing the national deficit.
Currently, American consumers are facing an effective tariff rate averaging almost 18%, the highest in nearly a century. Since Trump implemented sweeping tariffs in April, nearly $200 billion in customs duties have been collected from consumers, according to a recent report by the Treasury Department.
Economists are skeptical of the financial viability of Trump’s proposal. Erica York, vice president of federal tax policy at the Tax Foundation, pointed out on social media that distributing $2,000 to most Americans could exceed the total revenue generated from tariffs. She noted, “If the cutoff is $100,000, 150 million adults would qualify, for a cost near $300 billion. If kids qualify, that grows.”
Trump’s announcement comes amid a backdrop of economic claims, including assertions that the U.S. is “the Richest, Most Respected Country In the World,” with record stock market highs and an ongoing effort to pay down the national debt, currently standing at $37 trillion.
As this story develops, many will be watching closely to see if Congress takes any action on this proposal and whether the public will respond positively to Trump’s latest initiative. Stay tuned for more updates on this unfolding situation.
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