In an interview with One America News (OAN) on Thursday, President Trump stated that he is considering issuing stimulus checks of $1,000 to $2,000 to ordinary Americans from tariff revenues. Trump discussed how the increased government revenue from raising import tariffs could be utilized.
“We will take action, we are considering some measures. First, pay off debt, as in the past some have allowed debt to grow wildly,” President Trump said. “Along with economic growth, at our current growth rate, debt is already low… You need to escape debt through growth, it’s not a matter of how to repay, it’s through growth to get rid of debt.”
“We will repay debt, but we may also distribute some to the people, like giving Americans dividends.”
When asked about the scale of these proposed rebate checks, Trump mentioned that his team is considering giving each person “around $1,000 to $2,000.”
According to data from the US Department of the Treasury, as of the end of September, the US national debt has accumulated to over $37.86 trillion.
During the OAN interview, Trump stated that the US national debt has not yet reached $38 trillion, but it will in the future. He anticipates that policies including imposing comprehensive tariffs on US trade partners will stimulate economic growth, allowing the government to reduce national debt and share some revenue with American citizens.
“These tariffs are just beginning to take effect, to me, eventually the annual tariff revenue will exceed $1 trillion,” he said. “The current (revenue) figures are greater than ever before.”
Fox Business News reported that since April, the Trump administration’s new tariff policies have generated around $215 billion in revenue for the US.
However, according to the Bipartisan Policy Center’s estimation, the tax cuts law signed by Trump on July 4, the “OBBB,” may reduce US income by $3.4 trillion over the next 10 years, and with the additional interest on national debt, it could exceed $4 trillion. These additional costs may partially offset tax revenue.
Trump mentioned distributing a portion of tariff revenue back to American citizens in the form of rebate checks. This move may require congressional approval.
In July this year, Republican Senator Josh Hawley of Missouri attempted to pass a bill named the “American Worker Relief Act” to ensure that American citizens could receive stimulus checks from tariff revenue.
According to the proposal by Hawley, each adult American and dependent would receive a minimum subsidy of $600, meaning a family of four would receive a $2,400 subsidy. The bill allows for the subsidy amount to increase with the growth of tariff revenue.
The proposal suggests that US policy utilizes revenue generated from tariffs on foreign imports to provide immediate relief for the working people through direct rebates. “These funds need to be paid as quickly as possible,” and rebates should not be issued after December 31, 2026.
Hawley’s proposal has not yet been passed by Congress, and it’s unclear if it will gain bipartisan support in the highly divided Congress.