US President Donald Trump reiterated his claim that Americans could receive a $2,000 payment through tariff revenue and the move would not even require congressional approval. Addressing reporters, Trump said the strong tariff collection has created enough room for Americans to consider direct payments, while also helping reduce the national debt. On a question about whether the move would require congressional approval, he said, “I don’t think we’ll have to go to Congress, but, you know, we’ll find out.”He added, “We are talking about this because we have so much money coming in from the tariffs that we will be able to issue at least a $2,000 dividend and also pay off the debt for the country.”
“But we give a $2,000 dividend to the people of our country and will probably set an income limit where it makes sense, but we will be able to give a much larger dividend to the people of our country. I believe we can do that without Congress.”The comments come after the US Supreme Court dealt a significant blow to Trump’s tariff framework. Learning Resources, Inc. In the v. Trump case, the court ruled 6-3 that the US President does not have the authority to impose sweeping tariffs under the International Emergency Economic Powers Act (IEEPA). According to Forbes, the decision invalidated tariffs introduced under that legislation, including the administration’s “Liberation Day” measures, and complicated the proposed $2,000 “tariff dividend”.The financial implications of the decision could be substantial. According to Reuters, economists with the Penn-Wharton Budget Model estimate that more than $175 billion in tariff collections now faces potential refunds.The court’s decision was widely seen as a sharp rebuke of Trump’s aggressive trade policy. Writing for the majority, Chief Justice John Roberts said that the tariffs in question exceeded the scope permitted under federal law.Following the decision, Trump moved to adjust his approach, raising the global tariff rate to 10 and then eventually 15%. After criticizing the six judges who ruled against him, Trump posted on Truth Social that the tariffs would be increased “to the fully permitted and legally tested level of 15%” under Section 122 of the Trade Act, which allows the President to impose duties to address the “large and serious United States balance of payments deficit.”“Trump first introduced the idea of tariff-funded rebates last year, promising to pay $2,000 to Americans next year as families grapple with increased living costs. However, questions remain about the program’s affordability.
