In a significant development, former President Donald Trump has proposed direct payments of at least $2,000 to most Americans, funded by the revenue generated from his signature tariff policies. This announcement comes just days after the US Supreme Court expressed serious doubts about the legal justification for many of these levies.
Defending Tariffs and Proposing Payouts
Taking to his Truth Social platform on Sunday, President Trump vigorously defended the tariffs, which are a cornerstone of his economic agenda. He lauded the substantial revenue they have brought into government coffers and revealed a plan for its redistribution.
"People that are against tariffs are fools! We are now the richest, most respected country in the world, with almost no inflation, and a record stock market price," Trump wrote. He followed this with a concrete proposal: "A dividend of at least $2000 a person (not including high income people!) will be paid to everyone."
While the announcement has captured public attention, the former president did not provide further specifics on the eligibility criteria for these payouts or a precise timeline for their distribution. This is not the first time he has floated the idea of returning savings from his governmental agenda to the public. Earlier this year, he suggested that savings identified by Elon Musk's Department of Government Efficiency (DOGE)—which implemented budget cuts and workforce reductions—could be a source for similar payments.
Legal Challenges at the Supreme Court
The proposal emerges against a backdrop of legal uncertainty. Last week, the US Supreme Court heard arguments in a case where a coalition of small businesses and several states challenged Trump's authority to impose a large portion of his tariffs.
The central legal question revolves around the use of the International Emergency Economic Powers Act, a 1970s emergency-powers law. The Trump administration invoked this law to levy approximately three-quarters of the tariffs declared in his current term without seeking approval from Congress.
During the nearly three-hour hearing, justices from the Supreme Court appeared skeptical that this law grants the president unilateral power to impose such widespread tariffs. A ruling from the court is expected soon, potentially before the end of the year.
Contradiction in Government Stance
The legal challenge has highlighted a contradiction in the administration's position. In its arguments before the Supreme Court, the government contended that the primary purpose of the tariffs is not to raise revenue—a power constitutionally reserved for Congress—but to address national security concerns.
However, President Trump and White House officials have consistently emphasized the financial benefits. On Sunday, a White House official stated that the tariffs were safeguarding national security while simultaneously raising billions in revenue. "The Administration is committed to putting this money to good use for the American people," the official said, aligning with Trump's payout announcement.
The United States has collected tens of billions of dollars from these tariffs. President Trump has a history of authorising direct payments to citizens, having signed off on stimulus checks during the economic crisis triggered by the Covid-19 pandemic in his first term.
