Trump wants to give you $2,000 dividends from tariff revenue. Here’s what complicates his plan

“Short-term cash should not distract us from the long-term consequences of economic divestment that undermines communities most in need,” Alphonso David, president and CEO of the Global Economic Forum, told theGrio.

President Donald Trump unveiled a new proposal to pay Americans at least $2,000 in dividends from his global tariff policies, which experts say caused havoc on the U.S. economy and American businesses.

On Truth Social, Trump defended his tariffs, calling critics of the tax on foreign imports “FOOLS.” The president has imposed duties on goods from countries like China, Canada, Mexico, and India to pressure companies to bring manufacturing to the United States and stop the flow of fentanyl through the U.S. southern border.

The White House states that the tariff revenue collected to date has totaled more than $150 billion, noting that the Congressional Budget Office has found that it would reduce the U.S. deficit by $4 trillion over the next decade.

“We are now the Richest, Most Respected Country In the World,” Trump posted on Sunday, falsely claiming that the U.S. had “No Inflation.”

“We are taking in Trillions of Dollars and will soon begin paying down our ENORMOUS DEBT, $37 Trillion. Record Investment in the USA, plants and factories going up all over the place,” said Trump, who added, “A dividend of at least $2000 a person (not including high income people!) will be paid to everyone.”

Trump repeated his tariff proposal on Monday, writing in another post, “All money left over from the $2000 payments made to low and middle income USA Citizens, from the massive Tariff Income pouring into our Country from foreign countries, which will be substantial, will be used to SUBSTANTIALLY PAY DOWN NATIONAL DEBT.”

Why Trump’s tariff dividend plan is complicated

President Trump’s proposal to pay American dividends from tariff revenue is likely to be popular for most Americans. However, a new analysis from the Committee for a Responsible Federal Budget found that such dividends could cost $600 billion, despite the projected tariff earnings being $300 billion.

“We estimate that $2,000 dividends would increase deficits by $6 trillion over ten years, assuming dividends are paid annually. This is roughly twice as much as President Trump’s tariffs are estimated to raise over the same time period,” said the report.

Additionally, an analysis from the Center for American Progress highlights that Trump’s tariffs are harming businesses and workers, most especially those who are Black.

“His erratic tariff policies will bring rising costs and almost nonexistent avenues for exemption that threaten the survival of Black businesses and the trajectory of communities they anchor,” said a CAP report.

During the 2024 election, some Black voters expressed positive views of Trump’s candidacy because they credited him for stimulus checks totaling up to $1,200 that they received in 2020 during the COVID-19 pandemic. President Joe Biden also issued stimulus checks totaling up to $1,400, and an additional $1,400 for each qualifying dependent.

Alphonso David, president and CEO of the Global Economic Forum, told theGrio of Trump’s tariff dividend proposal, “You cannot buy back jobs lost, contracts stripped away from diverse businesses, or futures taken from working families with a $2,000 check.”

He added, “Short-term cash should not distract us from the long-term consequences of economic divestment that undermines communities most in need.”

Even if Trump is somehow able to implement his costly proposal to issue tariff dividends, the legality of his tariffs is currently being reviewed by the U.S. Supreme Court. If the high court rules against the administration, the federal government would have to pay back billions. Trade and customs experts say such a scenario would be a procedural “nightmare.”