Trump promises to pay Americans $2000 in dividends from tariff revenues

On November 9, President Trump announced that most Americans would receive "at least" $2000 in trade tariff revenue collected by the Trump administration, writes The Hill.

Trump's statement, made early on the morning of November 9 on his platform Social Truth, followed the White House's defense of tariffs under the International Emergency Economic Powers Act before the Supreme Court. The justices, however, expressed doubts about the president's liberal interpretation of the law.

Trump's public announcement that Americans would receive $2000 from tariff revenues came after Democrats won elections across the country last week. Affordability was a key campaign theme.

What Trump said

Since the morning of November 9, Trump has been touting his tariffs, declaring that those who oppose them are "FOOLS" and that the revenue generated by the tax on imported goods will soon begin to reduce the national debt and flow directly to the people.

"People who oppose tariffs are FOOLS! We are now the richest and most respected country in the world, with near-zero inflation and record-breaking stock market performance. 401ks are at the highest levels ever," Trump wrote in his post on Truth Social.

"We're raking in trillions of dollars and will soon begin paying off our HUGE $37 trillion debt. Record investment in the US, with factories and plants being built everywhere," he continued. "Everyone will receive a dividend of at least $2000 (except for high-income earners!)"

Trump mentioned the idea of ​​giving Americans checks of $1000 to $2000 last month.

"We're going to do a few things, and we're working on them. First, we're going to pay down the debt, because people have allowed it to get out of control," Trump said then. "We're going to pay down the debt, but we can also distribute the money to the people, almost like a dividend for the citizens of America."

Screenshot from Truth Social

On November 9, Treasury Secretary Scott Bessent said he had not yet discussed the proposal with Trump, but that "the $2000 dividend could take many forms and many different ways," not necessarily in the form of direct stimulus checks.

"These could simply be the tax breaks we see in the president's program," Bessent clarified. "For example, no tax on tips, overtime, or Social Security. The possibility of a deduction for car loans."

"So these are significant deductions that, as you know, are funded through the tax bill," he added.

On the subject: The shutdown could end this week: Republicans and Democrats have reached an agreement.

Who is entitled to dividends?

Trump did not specify who exactly would be eligible to receive the dividend, although he said "everyone" except "high-income individuals" would receive at least $2000 in dividend payments.

The White House and the Treasury Department did not respond to questions about which income levels are excluded from receiving the dividends and whether children will be eligible for the same payments. The administration also did not say how much these dividends would cost the country.

During the pandemic, Congress issued three stimulus checks, two of which were signed by Trump during his first term.

The first, in March 2020, provided $1200 to each taxpayer and $500 per child. The second, in December 2020, provided $600 to each taxpayer and $600 per child. The third, signed by 46th President Joe Biden in March 2021, provided $1400 to each taxpayer, or $2800 for spouses, and $1400 per child or dependent.

For the two rounds of checks signed by Trump, individuals earning up to $75,000 a year and couples earning up to $150,000 were eligible for the full payment. Higher-income Americans received reduced amounts up to a certain threshold.

According to the Internal Revenue Service (IRS), more than 476 million payments have been issued totaling $814 billion in financial assistance during the pandemic.

How much revenue do duties generate?

The Treasury Secretary said the primary purpose of tariffs is not to generate revenue (which falls under Congress's authority) but to correct unfair trade imbalances.

"It's not about revenue, it's about restoring balance," Bessent said. "Revenue comes at the initial stage. And then, when the balance is restored and jobs come back to the country, it becomes domestic tax revenue."

You may be interested in: top New York news, stories of our immigrants and helpful tips about life in the Big Apple - read it all on ForumDaily New York

However, the tariffs have already generated billions of dollars in revenue. By September, the government had collected $195 billion in taxes on foreign goods, which companies pay when importing products from abroad.

This represents an increase of 250% (an additional $118 billion) compared to the previous fiscal year (2024).

Tariffs are expected to generate approximately $3 trillion over the next decade, according to the Treasury Department.

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