UPDATE: President Donald Trump has just proposed a plan to distribute $2,000 checks to Americans, claiming the funds would come from revenues generated through tariffs. This announcement, made on October 30, 2023, appears aimed at rallying support amidst his soaring disapproval ratings, currently at 63%, according to a recent CNN poll.
In a post on Truth Social, Trump stated, “A dividend of at least $2000 a person (not including high-income people!) will be paid to everyone.” He further emphasized that those opposing tariffs are “FOOLS!” This isn’t the first time Trump has suggested using tariff revenue for direct payments; similar proposals have been floated during his presidency but have yet to materialize.
Trump’s administration has collected nearly $200 billion in customs duties since implementing sweeping tariffs on various global trading partners in April. However, the legality of these tariffs has been challenged even by the conservative-majority Supreme Court, raising questions about their sustainability.
The proposed checks would require Congressional approval, a hurdle Trump faces amidst a divided government. Earlier this year, Republican Senator Josh Hawley introduced a bill for $600 checks funded by tariff rebates, but Treasury Secretary Scott Bessent revealed those funds would be allocated to reduce the federal deficit instead.
Trump’s latest proposal incites skepticism among economic experts. Erica York, vice president of federal tax policy at the Tax Foundation, pointed out that providing $2,000 to most Americans could exceed the revenue generated from tariffs. “If the cutoff is $100,000, 150 million adults would qualify, costing near $300 billion,” she noted on social media.
The implications of this proposal are significant, particularly as it coincides with a time when consumer prices are affected by the highest effective tariff rates in nearly a century—averaging almost 18%, according to the Yale Budget Lab.
Trump boasted about the economic status of the United States in his announcement, claiming, “We are now the Richest, Most Respected Country In the World, With Almost No Inflation, and A Record Stock Market Price.” He asserted that the country is poised to pay down its enormous debt of $37 trillion and highlighted record investments in U.S. infrastructure.
As discussions about these potential checks unfold, experts are closely monitoring the situation for any developments. The administration’s track record on similar initiatives raises questions about the feasibility and timing of such payments. What remains to be seen is whether Congress will support this new proposal and how it will affect the already complex economic landscape.
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