In recent times, the Trump administration has claimed to have collected $8 trillion in tariffs so far. This has raised the morale of the nation, and now President Trump is claiming to give back to the people.
He is proposing to send out new stimulus checks to American households. And Trump plans to fund it entirely by revenue from tariff money. Trump has floated this plan in a recent interview where he claims that his aim is to deliver what he called a dividend to the people of America. He claims that this is his broader economic agenda.
Trump eyes $1,000-$2,000 ‘dividend’ checks for Americans — and cash will ‘ultimately’ come from $1T in tariff revenue. Would you be happy with it?https://t.co/YDooagUTH4
— T (@Rifleman4WVU) October 4, 2025
Axios reports that the proposal claims that the administration would issue direct payments of $1,000 to $2,000 to citizens. The money will be taken from the tariff collected on imported goods.
Trump has also said the idea behind this proposal is to “give the American people back the money that comes from other countries taking advantage of us.”
The president has always been in favor of tariffs as a tool to control global trade. He has time and again claimed that higher tariffs would make it a level playing field.
For a long time, Trump has been concerned with the apparent benefits of ‘free trade’ with nations like China. And now that the administration has filled its coffers with the tariffs collected over the last few months, it wants to redirect that revenue towards working families.
“It’s America’s money, not the government’s money,” Trump reportedly said. He has framed the plan as economic patriotism. He claims it is also a way to combat inflation’s toll on consumers.
During his first term, Trump’s administration issued multiple rounds of stimulus checks. At that time, it was to boost consumer spending during the COVID-19 pandemic.
However, this new proposal is tied to tariff revenue. Trump has claimed that this mechanism will make the payments more sustainable.
However, fiscal policy experts and trade analysts have questioned if Trump has the authority to implement such a plan since so far this has not been brought in front of Congress and they can very well disapprove it.
However, currently, republicans hold all three branches of the government, and that might be a factor in favor of the government and their plan of stimulus checks.
Tariff revenue flows into the federal budget, and redistributing it directly to citizens would likely require new legislation.
“Calling it a ‘dividend’ doesn’t change the basic math,” one economist told Axios. “If you raise tariffs, consumers pay higher prices, and the Treasury collects more. But that’s not free money or stimulus check. It’s a hidden tax.”
Democrats and some moderate Republicans have criticized the idea as “populist optics” rather than a serious policy proposal. Still, Trump’s team sees it as a winning message as it combines pocketbook relief with his signature “America First” rhetoric.
Whether the proposal becomes law or remains campaign rhetoric, it has already reignited debate over tariffs, stimulus spending, and the limits of presidential power.
Apply all tariffs to the debt!!!