Donald Trump has shared his strategy for providing most Americans with low to medium incomes a $2000 tariff ‘dividend check.’
The Committee for a Responsible Federal Budget estimates that distributing the $2000 payment to most Americans could cost around $600 billion in total, which is more than twice the expected revenue from tariffs imposed earlier this year.
To date, the substantial tariffs have generated approximately $90 billion from various major countries globally, with a standard tariff of roughly 10% applied to most foreign nations.
Despite this, the amount collected is still insufficient to fulfill his promise of a check, and Trump has assured that taxpayer funds will not be used to cover the deficit.
He maintains his belief that tariffs will finance the checks, and on Monday (November 24), the President provided an update expressing confidence that the tariffs will soon increase significantly to fill the funding gap.
On Truth Social, he stated that the “full benefit of the Tariffs had not yet been calculated.”
Earlier this year, many businesses accelerated their inventory purchases before tariff deadlines, allowing them to momentarily bypass hefty import fees.
However, as warehouses begin to exhaust their backstock, the President predicts that companies will soon have to pay the full enhanced import fees.
With tariffs expected to be paid without avoidance on all applicable items, Trump forecasts that the amount payable to the USA will ‘skyrocket over and above the already historic levels of dollars received.”
While many are hopeful for a potential $2000 payment, expected before the 2026 mid-terms, Republican lawmakers have expressed concerns that Trump’s tariff dividends could harm the economy.
During the peak of the coronavirus pandemic in 2020, Trump approved a covid stimulus payment to assist Americans, a move that was generally well-received by those in need.
However, after Joe Biden assumed office in 2021, Democrats advocated for additional stimulus checks, which some economists believe contributed to inflation.
As living costs increased, Biden’s approval rating declined, with experts warning a similar outcome could occur for Trump if he proceeds with his current plan.
According to the Consumer Price Index, inflation has been rising since January, with prices reaching 3% in September.
Amidst the escalating costs, Treasury Secretary Scott Bessent has advised Americans to save the checks rather than spend them to prevent further inflation.
“Maybe we could persuade Americans to save that, because one of the things that’s going to happen next year is the Trump account[s]”, he told Fox News.
Under new proposals, a federally backed savings account for children born between 2025 and 2028 will be introduced next year, with an initial $1000 contribution from the US Treasury.
During the pandemic, about 30% of Trump’s covid stimulus checks were saved by Americans, while 40% were spent immediately. The remaining 20% helped many households reduce their debt.