Trump pushes $2,000 “tariff dividend” plan, critics call it economic fantasy

US President Donald Trump says he wants to send every American a $2,000 cheque, funded, he claims, by the money flowing into federal coffers from his tariffs.

White House press secretary Karoline Leavitt confirmed on Wednesday that the administration is “exploring mechanisms” to make the plan happen, though she offered no details on timing, eligibility or structure.

Trump floated the idea on his Truth Social account over the weekend, just days after Republicans suffered a string of election losses in Virginia, New Jersey and other states. He blamed “Democrat lies” and “media manipulation” for the setbacks but acknowledged that high living costs remain a political liability.

“The tariffs are bringing in so much money,” Trump wrote, “that a dividend of at least $2000 a person (not including high-income people!) will be paid to everyone.”

The announcement came amid bleak polling for the president: a new AP-NORC survey found 67% of Americans disapprove of his handling of the economy.

Former Biden administration official Alex Jacquez called Trump’s proposal “another Truth Social gimmick.” He added, “It’s interesting that his public statements don’t line up with what his lawyers are arguing in court. He’s trying to frame this as an economic lifeline while his legal team defends the tariffs as a national security tool.”

Economists have panned the math. Tariffs generated about $195 billion in revenue for the fiscal year ending September 30, up 153% from 2024, but still less than 4% of total federal income. Meanwhile, the federal deficit stands at $1.8 trillion.

Analysts estimate the cost of Trump’s plan would approach $600 billion if every American, including children, received the full payment. “It’s clear that the revenue coming in would not be adequate,” said John Ricco of Yale University’s Budget Lab, adding that any such payments would require congressional approval.

Even Treasury Secretary Scott Bessent appeared blindsided, telling ABC’s This Week that he hadn’t discussed the plan with Trump. “It might not be a cheque,” Bessent said, suggesting the White House could instead pursue tax rebates.

Trump’s “tariff dividend” echoes his previous, short-lived proposal for “DOGE dividend” payments, a populist idea that fizzled once economists and Congress questioned its legality.