(WDNews) – President Donald Trump is pitching a new idea he calls a “tariff dividend,” proposing that revenue collected from U.S. tariffs could fund direct payments of at least $2,000 per person to most Americans.
The proposal appeared Sunday on Trump’s Truth Social account, just days after Republican losses in several state elections, including Virginia and New Jersey. Analysts have largely attributed the defeats to voter frustration over persistent inflation and the cost of living.
“The tariffs are bringing in so much money,” Trump wrote, “that a dividend of at least $2,000 a person (not including high-income people!) will be paid to everyone.”
The president has long touted tariffs as a tool to protect American industries, create jobs, and strengthen his hand in international trade negotiations. He now claims they are also generating enough federal revenue to finance substantial cash payments to U.S. residents.
However, economists and budget experts remain skeptical.
“The numbers just don’t check out,” said Erica York, vice president of federal tax policy at the nonpartisan Tax Foundation. “Tariff revenue is nowhere near enough to cover that kind of nationwide payout.”
Few details have been released, including the potential income limits or whether dependents would qualify for payments. The White House has not provided further clarification on how or when such dividends might be distributed.
