The American president has just announced a "tariff dividend" funded by what the US has been collecting through trade with other countries.
Stimulus checks are officially back — along with various measures to increase liquidity — but with a new nationalist veneer.
- In a post on Truth Social, Trump stated:
“We are raising trillions of dollars and we will begin paying off our $37 trillion debt.
A dividend of at least $2,000 per person will be paid—except to the wealthiest.”
2- He called the measure a “Tariff Dividend” — a new type of economic stimulus funded by import tariffs, not by issuing debt.
Trump wants to transform tariff revenue into direct benefits for the American population.
3- Trump also attacked critics of the tariffs:
“Anyone who opposes tariffs is an IDIOT!
Now we are the richest and most respected country in the world, with low inflation and stocks at all-time highs.”
4- According to the announcement, the minimum fee will be US$2,000 per person, funded with the nearly US$200 billion collected in fees in 2025.
There will be no fee for those in the highest income bracket.
5- In practice, this is a new round of stimulus checks—like those from the pandemic. But now with a protectionist slant: the money comes from foreign countries, via tariffs.
This is coupled with other economic stimulus measures, such as interest rate cuts, the end of QT, and deregulation of the financial sector, while inflation remains above target.
6- The proposal reinforces the "Trumpomics" style: economic populism, direct stimulus to the population, and confrontation with trade rivals.
For him, tariffs are not a cost—they are a source of revenue that can finance social programs without affecting domestic taxes.
7- This stimulus costs at least US$400 billion (US$2,000 x 200 million Americans)
The question that remains is: will the expenditure really be double what will be collected in the year?
How does this lead to debt reduction?