US President Donald Trump suggested that middle and lower-income Americans might receive some form of dividend from the tariff revenue. Until now, most US companies have shouldered the tariff cost burden rather than passing it on to consumers. But the latest inflation numbers suggest that might be starting to change, with the rise in consumer prices.
Just before boarding Air Force One after leaving his golf club in New Jersey, Trump told reporters, “There could be a distribution or a dividend to the people of our country, I would say for people that would be middle-income people and lower-income people, we could do a dividend.”
According to Treasury Secretary Scott Bessent, the tariffs have already brought in $100 billion for the US and could generate as much as $300 billion annually.
Trump said they were considering rebate checks earlier
Nearly two weeks ago, Trump said his administration was considering sending rebate checks to Americans, funded by tariff revenue. He mentioned that the payments might be targeted at “people of a certain income level,” though he didn’t specify the threshold.
At the time, however, he emphasized that while the rebate plan was on the table, the administration’s top priority was reducing the national debt. Currently, the US federal debt stands at over $36 trillion, which analysts believe will only rise, especially due to the new tax cuts and spending package enacted by Trump on July 4.
The Joint Committee on Taxation estimates that the Big Beautiful Bill Act could inject $3.4 trillion into the federal deficit in the next ten years.
In February, Trump had initially floated the idea of rebate checks, noting that a portion—specifically 20%—of the savings generated by Elon Musk’s cost-cutting initiative, the Department of Government Efficiency (DOGE), could be used for direct taxpayer payments. However, to issue rebates, Congress would have to pass legislation granting the Treasury Department the authority to send out payments.
The White House extended its deadline to August 7
Trump has slapped levies on most of America’s trading partners to correct the trade imbalance. In April, the US President first announced “reciprocal tariffs,” which had immediate global repercussions, with stock markets plummeting and investor confidence shaken.
Trump then opted to delay the full implementation of tariffs, imposing a 90-day moratorium and applying a baseline rate of 10%. This pause provided an opportunity for negotiations with the federal government. Originally due to expire on July 9, the moratorium was extended to August 1, allowing several nations to reach agreements with the U.S.
However, the White House has once again pushed back the deadline, giving countries until August 7 to negotiate. Inu Manak, a trade policy expert at the Council on Foreign Relations, said many nations are likely to use the extra time to try to strike better tariff terms. She pointed out that those facing steep tariffs—15% or more—particularly, have a real incentive to come to the discussion table.
So far, the Trump administration has managed to strike deals with countries like Japan, Indonesia, South Korea, the Philippines, and the European Union.
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