...
By Hugh Cameron
Reporter
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
President Donald Trump’s proposal for a tariff “dividend” check has gathered strong support among the U.S. public, whose faith in his economic agenda continues to decline.
According to a Daily Mail survey of 1,000 registered voters—fielded between December 20 and 21—52 percent are in favor of a tariff rebate, including 44 percent of Democrats, while only 20 percent oppose the idea.
The same poll found that 48 percent of voters believe everyday life has become less affordable due to the actions of the Trump administration, and that 44 percent believe the economy is worsening, up from 38 percent in January.
Read More on News
Why It Matters
The administration has provided few clear details regarding the timing or disbursement of these checks, but officials have repeatedly floated the idea of rebates funded with tariff revenues, and the White House has voiced its commitment to putting these “to good use for the American people.”
As polls indicate, the checks would be a welcome boost for the growing number of U.S. households struggling with rising costs, and by extension for a president battling increased scrutiny over his handling of the economy.
However, others within the administration have poured cold water on the idea of a direct payment. Experts also remain skeptical that the revenues from Trump’s duties would be sufficient to cover the costs of this stimulus, and believe that should such checks materialize, these could worsen America’s inflationary challenges.
What To Know
In early November, Trump said his administration planned on issuing a “dividend” of around $2,000 to lower- and middle-income Americans, funded by the “trillions of dollars” his tariffs were generating.
According to the Treasury Department, the U.S. collected $195 billion in customs duties in the fiscal year which ended September 30, with an additional $62 billion in total collected in October and November.
During a briefing in November, White House press secretary Karoline Leavitt said the administration was “committed” to distributing these checks, and said it was exploring “all legal options to get that done.” Last month, the president said his tariffs would allow for “a nice dividend to the people in addition to reducing debt."
...
However, Treasury Secretary Scott Bessent has said that distributing the revenues from Trump’s import taxes could come “in lots of forms” beyond a direct payment, and that the rebate could simply be actions the administration has already taken.
"It could be just the tax decreases that we are seeing on the president's agenda. You know, no tax on tips, no tax on overtime, no tax on Social Security, deductibility of auto loans," Bessent told ABC News in November. "So, you know, those are substantial deductions that, you know, are being financed in the tax bill."
Multiple independent think tanks, and experts who spoke with Newsweek about the plan, have concluded that fees levied on foreign imports will be insufficient to finance these generous checks while also paring down the national debt as Trump promised.
“Even if the $2,000 checks are awarded per household (not per person), and only to households earning less than $100,000 per year, the budgetary cost would be more than $200 billion,” Maurice Obstfeld, a senior fellow at the Peterson Institute for International Economics, told Newsweek previously.
“This sum is close to the revenue Trump’s tariffs will probably yield this year, and more than half of the cost of extending the Obamacare subsidies for 10 years,” he added.
What People Are Saying
Erica York, vice president of federal tax policy at the Tax Foundation, told Newsweek in November: “Sending out checks to Americans is a recipe for higher inflation at a time when inflation is still stubbornly too high.
“The president is pushing the Federal Reserve to cut interest rates, while he is also now pushing for higher spending—those two policies in combination would seriously threaten a return of higher inflation,” she added.
What Happens Next
The Supreme Court is expected to rule on the legality of Trump’s tariffs early this year, after lower court rulings challenged his authority to impose them through emergency powers. When hearing oral arguments in November, justices appeared skeptical of Trump’s tariff powers, though the administration has said it had alternative means of carrying out his trade agenda should the court rule against it.
The news cycle is loud. Algorithms push us to extremes. In the middle—where facts, ideas and progress live—there's a void. At Newsweek, we fill it with fearless, fair and fiercely independent journalism.
Common ground isn't just possible—it's essential. Our readers reflect America's diversity, united by a desire for thoughtful, unbiased news. Independent ratings confirm our approach: NewsGuard gives us 100/100 for reliability, and AllSides places us firmly in the political center.
In a polarized era, the center is dismissed as bland. Ours is different: The Courageous Center—it's not "both sides," it's sharp, challenging and alive with ideas. We follow facts, not factions. If that sounds like the kind of journalism you want to see thrive, we need you.
When you become a Newsweek Member, you support a mission to keep the center strong and vibrant. Members enjoy:
Help keep the center courageous. Join today.
View 0 Comments
Submit Correction
View Editorial & AI Guidelines