Donald Trump, responding to Republican defeats in key state elections, announced a plan to pay $2,000 to every American funded by new tariff revenues. This move has prompted a debate about whether such payments are realistic and what the economic impacts could be.
The U.S. has previously distributed stimulus checks, most recently during the COVID-19 pandemic, but current economic conditions are marked by high inflation, and tariff revenues are insufficient to cover the anticipated costs. Experts and the Treasury Secretary have expressed surprise at the proposal and described it as unrealistic.
The plan would provide payments to about 150 million Americans earning less than $100,000 per year, totaling $300 billion annually, which could rise to $600 billion if children are included. Meanwhile, actual tariff revenues are much lower, and Trump had also promised to use some of the funds to cut taxes and reduce the national debt.
Another issue is the legal status of the tariffs: the U.S. Supreme Court is reviewing their legality, and a negative decision could force the government to refund money to importers.
Economists caution that such large payments may only worsen inflation without improving real access to basic goods and services.
