Trump suggests $2,000 payouts to Americans as he defends tariffs

The president has previously floated the idea of returning savings from his agenda to Americans. (AP)
The president has previously floated the idea of returning savings from his agenda to Americans. (AP)
Summary

President praises benefits of the levies after Supreme Court appears skeptical of his justification for many of them.

President Trump suggested tariff revenue could be used to fund payments of at least $2,000 to most Americans.

Days after the Supreme Court appeared skeptical of the legal backing for many of his tariffs, the president on social media Sunday lauded the revenue they have brought in, and said the government would soon begin paying down the country’s debt. He also said a payment of at least $2,000 would be made to everyone but high-income earners.

“People that are against tariffs are fools! We are now the richest, most respected country in the world, with almost no inflation, and a record stock market price," Trump wrote in a post on Truth Social. “A dividend of at least $2000 a person (not including high income people!) will be paid to everyone."

Trump didn’t offer further details about the payouts or who would qualify for them.

The president has previously floated the idea of returning savings from his agenda to Americans. He suggested earlier this year that the government could give payouts from savings carved out by Elon Musk’s Department of Government Efficiency. DOGE implemented budget cuts and workforce reductions at federal agencies. Trump in his first term signed stimulus checks to Americans during the Covid-19 pandemic when the economy cratered.

The U.S. has collected tens of billions of dollars from the tariffs, the president’s signature economic policy. Trump invoked his authority under a 1970s emergency-powers law to levy many of the global tariffs without Congress’s approval.

In arguments before the Supreme Court last week, justices expressed doubt that the president has unilateral authority to impose tariffs under the International Emergency Economic Powers Act. Tariffs imposed under the law amount to about three-quarters of the levies that Trump has declared so far in his second term. In a nearly three-hour hearing, a group of small businesses and states challenged Trump’s legal powers to levy those tariffs. It isn’t clear when the court might rule, though it is possible a decision could come before the end of the year.

The government argued before the Supreme Court that the tariffs aren’t intended to raise revenue—a power the Constitution assigns to Congress. Trump has emphasized the tariff revenue and the ways the money could be spent.

The White House said Sunday that the tariffs were safeguarding the country’s security and raising billions in revenue for the government. “The Administration is committed to putting this money to good use for the American people," a White House official said.

Write to Alyssa Lukpat at alyssa.lukpat@wsj.com

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
more

topics

Read Next Story footLogo