How will Americans get Trump's $2,000 tariff dividend? Here's what Scott Bessent says
US Treasury Secretary Scott Bessent indicates that President Trump's proposed $2,000 tariff dividend could be given through tax cuts in his economic policy bill. Bessent clarifies that he has not discussed the idea with Trump.
US Treasury Secretary Scott Bessent said President Donald Trump’s idea of giving a tariff “dividend” of around $2,000 to Americans may come through tax cuts passed in his signature economic policy bill earlier this year.
Scott Bessent's statement on ABC's This Week was a response to Donald Trump's social media post on Sunday, where he called out people who criticise tariffs and claimed “a dividend of at least $2000 a person (not including high-income people!) will be paid to everyone.”
Bessent mentioned that he did not discuss this suggestion with Trump, but “the $2,000 dividend could come in lots of forms, in lots of ways. It could be just the tax decreases that we are seeing on the president’s agenda — no tax on tips, no tax on overtime, no tax on Social Security – deductibility on auto loans.”
What is Donald Trump's tariff dividend?
In a post on Truth Social, President Donald Trump wrote, “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. 401k’s are Highest EVER.”
While promising dividends to Americans, he added, “We are taking in Trillions of Dollars and will soon begin paying down our ENORMOUS DEBT, $37 Trillion. Record Investment in the USA, plants and factories going up all over the place. A dividend of at least $2000 a person (not including high income people!) will be paid to everyone.”
Supreme Court's doubts over tariffs
The US president has repeatedly defended his tariff policy following the Supreme Court's arguments on 5 November. Several justices appeared sceptical, suggesting that many of the tariffs might be overturned, potentially requiring refunds exceeding $100 billion, Bloomberg reported.
Judges raised questions about whether an emergency law grants Trump “near-limitless power” to establish and modify import duties.
Trump warned that it would be a “disaster” for the US if the court ruled against him.
The case includes Trump’s April 2 “Liberation Day” tariffs, which impose taxes ranging from 10% to 50% on most US imports depending on the country of origin. He argues that these duties are justified to tackle the longstanding national trade deficit.
A question regarding the administration’s justification for tariffs is whether the revenue generated from them functions as de facto taxes, which Chief Justice John Roberts said have “always been the core power of Congress,” the report said.
Elaborating on Trump's statement on the US taking in trillions of dollars via tariffs, Bessent said, "Over the course of the next few years, we could take in trillions of dollars. But the real goal of tariffs is to rebalance trade and make it more fair.”