President Donald Trump announced on Sunday via Truth Social that tariffs on foreign goods would generate a dividend of at least $2,000 per person, excluding high-income individuals, to be paid to everyone.
He emphasized the benefits in a post that labeled opponents of tariffs as fools.
This proposal emerges as the administration faces scrutiny over the legality of its widespread tariff impositions.
The Supreme Court heard arguments on Wednesday regarding the tariffs' constitutionality, with Chief Justice John Roberts questioning whether the president's foreign affairs powers should override Congress's authority to tax.
Trump dismissed such concerns in another post, arguing that the president can halt all trade with a foreign country but not impose tariffs for national security, calling the situation ridiculous.
Treasury Secretary Scott Bessent addressed Trump's dividend idea during an ABC News interview on Sunday.
He clarified that the primary aim of tariffs is not revenue generation but to rebalance trade by restoring manufacturing to the United States.
Bessent noted that while tariffs initially surge government funds, increased domestic production would eventually reduce tariff reliance and boost tax revenues instead.
Regarding the $2,000 dividend, which lacks a specific proposal, Bessent hedged, stating he had not discussed it with the president.
He suggested the benefits could manifest in various forms, such as funding tax decreases on tips and overtime outlined in Trump's agenda.
According to the Treasury Department's September report, $195 billion in tariff duties were collected in the first three quarters of the year.
As of October, the average effective tariff rate stands at nearly 18 percent, the highest since 1934, with companies passing some costs to consumers.
This is not the first instance of Trump floating tariff-funded rebates.
In October, he considered checks worth $1,000 to $2,000; in July, he suggested similar rebates.
Earlier this year, Senator Josh Hawley introduced a bill for $600 rebates per American and dependents, aiming to return tariff wealth to families.
However, Bessent stated in August that tariff funds would prioritize reducing the national debt, currently at $38.12 trillion.
In February, Trump and Elon Musk discussed a $5,000 dividend from government efficiency savings, but it did not materialize as the deficit grew.
Opponents argue tariffs act as a tax on American businesses and consumers, potentially usurping congressional powers.
Trump maintains that businesses are flocking to the U.S. solely due to tariffs, positioning them as central to unprecedented economic growth.