President Donald Trump is suggesting that middle- and lower-income Americans could receive direct cash payments — what he referred to as a “dividend” —funded by revenues generated from his tariffs on foreign imports.
“There could be a distribution or a dividend to the people of our country. I would say for people that would be middle-income people and lower-income people, we could do a dividend,” the president told reporters Sunday before boarding Air Force One on his way back to Washington, D.C., from his golf club in Bedminster, New Jersey.
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Trump did not specify how such a distribution would be implemented.
Trump has long argued that tariffs — especially those levied on China and other major U.S. trading partners — serve not only as a tool to strengthen American manufacturing, but also as a revenue generator for the federal government.
According to the U.S. Treasury, tariffs imposed during Trump’s first term in office brought in tens of billions of dollars annually, though many economists note that the cost of those tariffs often trickled down to consumers in the form of higher prices.
Introduced in earlier this year, his bill proposes issuing at least $600 per adult and dependent child as refundable tax credits, funded entirely by tariff revenue, with more possible if collections exceed expectations.
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The proposal phases out the credit for individuals earning more than $75,000, heads of households above $112,500, and joint filers above $150,000.
Officials close to Trump, including Treasury Secretary Scott Bessent, have acknowledged tariff revenues have exceeded $100 billion and could reach $300 billion annually — although their preferred use has leaned toward deficit reduction.
This is not the first time Trump and his advisers have floated the idea of returning tariff revenue to American citizens.
In 2019, during his first term in office, Trump administration officials reportedly discussed using tariff proceeds to provide rebate checks to farmers and working families adversely affected by the trade wars.
At the time, then-White House economic adviser Larry Kudlow referred to it as a potential “tax rebate” funded by Chinese tariff payments — though critics pointed out that American importers were paying those tariffs, not China directly.
This report contains material from Reuters.
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