President Donald Trump’s latest idea to soften the impact of his controversial tariffs is facing some serious pushback, even from his own party. Last month, Trump floated the idea of giving Americans a rebate from the tariff revenue, telling reporters, “We have so much money coming in, we’re thinking about a little rebate.”
The proposal caught the attention of Republican Senator Josh Hawley, who quickly suggested a $600 tax credit for all Americans, similar to the stimulus checks given out during the COVID-19 pandemic under both Trump and Joe Biden. It seemed like a straightforward way to return some of the tariff money to taxpayers, at least in theory.
But not everyone is on board. In fact, many Republican senators are openly against the idea. MSNBC’s Ryan Teague Beckwith made it clear, saying, “To be clear: This is not going to happen.” He pointed out that if the tariff rebates were anything like the COVID stimulus checks, they would cost the government around $164 billion, which is almost the same amount of money the tariffs brought in during the first half of the year.
That raises a big red flag: basically, giving away most of the money the tariffs were supposed to generate.
Republicans, including some who have supported Trump in the past, are raising concerns. They argue that the windfall from tariffs should be used to pay down the national debt, something Trump has also said is a priority.
Trump is once again bragging about how his administration is raising “trillions not billions” in tariff revenue.
Can anyone tell him the American people pay the tariff? pic.twitter.com/JbbvfRau9u
— Ron Smith (@Ronxyz00) August 5, 2025
Senator Bernie Moreno, a major Trump ally, called the rebate idea “insane,” citing two main reasons: the U.S. has a massive $37 trillion debt, and the rebates could be “extraordinarily inflationary.” “It’s fiscal stimulus,” he said, suggesting that giving out more money could just make things worse for the economy.
Others in the GOP are skeptical, too. Senator Roger Marshall isn’t convinced that the rebates are needed. “The folks back home don’t feel like they’re being hurt by tariffs, just the opposite. Prices have stabilized,” he said, making the point that the tariffs aren’t causing the pain some people think they are.
Senator James Lankford was even more blunt, saying simply, “I think it’s a bad idea.”
When asked for comment, a White House spokesperson told The Daily Beast, “As the President has said, tariffs are bringing in historic revenue for the federal government that can be used for the benefit of the American people. The Administration is considering multiple options for this windfall revenue.”
But at this point, the tariff rebate idea is starting to look more like an empty promise. It brings to mind another proposal that fizzled out: the “DOGE dividends” idea. Elon Musk and Trump both floated using some of the savings from Musk’s company, Dogecoin, to issue a $5,000 tax credit to all Americans. But that never went anywhere, with Musk’s estimates falling short, and his relationship with Trump eventually crumbling.
It’s looking more and more like this tariff rebate idea might be headed for the same fate, another political promise that never quite comes to life. While Trump’s administration might continue to look for ways to use the tariff revenue, handing out rebate checks doesn’t seem likely to make it past the drawing board.
