President Trump’s $2,000 tariff rebate plan could cost twice as much as it earns
President Donald Trump’s $2,000 tariff rebate plan could cost $600 billion a year, twice as much as tariff revenue.
President Donald Trump wants you to receive a $2,000 customs dividend check.
The president floated the idea on Truth Social on Nov. 9, saying tariff revenue would make the checks possible. “Those who oppose tariffs are idiots!” he posted. “Everyone (except high-income earners!) will be paid a dividend of at least $2,000 per person.”
White House Press Secretary Caroline Levitt reiterated the president’s interest in the proposal when asked about it on Wednesday, Nov. 12.
“The White House is committed to making that happen, and we are currently considering all legal options to make that happen,” Levitt said. “I can’t give you a timeline or any further details, but I can confirm that the president has made it clear that he wants to make it happen. So our team of economic advisors is looking at it and we’ll update you as we get more information.”
President Trump expressed a similar idea through DOGE.
This is not the first time President Trump has proposed giving money to Americans. Back in February, President Trump said he was considering sending stimulus checks to taxpayers for potential savings from Elon Musk’s Department of Government Efficiency (DOGE) cost-cutting efforts.
The idea came from Azoria investment firm CEO James Fishback, who had been lobbying Company X to issue stimulus checks to Musk based on his claimed savings. The checks, which required Congressional approval, were not issued.
Why you shouldn’t spend your $2,000 customs dividend check yet
The $2,000 check will likely come from customs revenue. But the Committee for a Responsible Federal Budget, a nonpartisan nonprofit that studies fiscal policy, said in a Nov. 10 report that while the first round of tariff dividend checks could cost about $600 billion, the tariffs have so far provided about $100 billion in benefits.
With the national debt at more than $38 trillion, “it is imperative that policymakers focus on actually reducing the deficit and putting the debt on a downward trajectory,” the group said. “Additional tariff revenue should be used to reduce the deficit, as some administration officials have stated their intention, rather than passing that revenue on to taxpayers in the form of cash dividends.”
Recent government stimulus checks
There were several stimulus checks issued by the IRS earlier this year. These were sent to taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns. Those who didn’t were eligible for stimulus checks of up to $1,400.
Several stimulus checks have been sent out during the COVID-19 pandemic. In 2020, during President Trump’s first term, taxpayers received a $1,200 check in March 2020 and a $600 check in December 2020. Many Americans received $1,400 COVID-19 relief checks in March 2021 after President Joe Biden took office.
Trump’s name appeared on the checks issued in 2020, an apparent move by Trump to gain credit for the bill approved by Congress. Biden’s name was not on the 2021 checks issued as part of the American Rescue Plan because he did not want to delay payments.
A month before he left office, Biden joked that the lack of a signature may have been a mistake that led to Americans not recognizing his administration’s economic successes.
In a speech at the center-left think tank Brookings Institution, Mr. Biden said Mr. Trump’s actions were a lesson. “He signed the people’s checks,” Biden said. “And I wasn’t stupid,” he said with a laugh, before adding, “But all kidding aside.”
Contributors: Kinsey Crowley, Greta Cross, Joey Garrison, James Powell
Mike Snyder is a national trends news reporter for USA TODAY. You can follow him on Threads, Bluesky, and X, and email him at: mike snyder & @mikegsnider.bsky.social & @mikesnider & msnider@usatoday.com
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