When payments could occur

Donald Trump has introduced a new idea on Truth Social to create a nationwide “American Dividend” funded by tariffs. He said the plan would provide “a dividend of at least $2,000 per person (excluding high-income earners)” and would be paid directly to Americans.

Trump proposes collecting more tariff revenue from imported goods and sending part of that money back to U.S. households. He argues that foreign exporters should “contribute more to the U.S. economy” and insists tariffs are effective, saying critics are “fools.” He also described the U.S. as “the richest, most respected country in the world” and pointed to economic conditions during his presidency to support his approach.

The plan’s structure is still vague. There is no explanation yet of how payments would be distributed or who qualifies. Options could include rebates, tax credits, or offsets, but no official framework exists.

Economists note that using tariffs to fund dividends is unusual, though Alaska’s oil dividend offers a loosely similar model. Critics warn tariffs can raise prices and strain trade, while supporters believe they could boost U.S. manufacturing and lessen reliance on imports.

For now, the proposal remains a political idea rather than a detailed policy. If ever implemented, it would be one of the largest attempts to turn tariff revenue into direct income. Trump’s message centers on using national revenue tools to prioritize American households, with feasibility depending on future policy design and trade impacts.

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