President Donald Trump is mulling over the idea of issuing rebate checks to Americans, funded by the new tariff revenue collected by his administration.
What Happened: Trump, before his departure for Scotland, stated that a ‘lot of money’ is coming in through tariffs. He hinted at the possibility of issuing rebate checks to Americans when asked on the same by reporters. “We’re thinking about a little rebate. But the big thing we want to do is pay down debt. But we’re thinking about a rebate,” Trump stated.
The rebate could be aimed at “people of a certain income level,” though the specific income threshold is yet to be determined, reported Forbes.
The federal debt has surpassed $36 trillion and is expected to grow further following the enactment of a new tax cuts and spending bill signed into law on July 4. Economists and policy institutes project that the One ‘Big, Beautiful Bill Act’ could add $3.4 trillion to the national deficit over the next ten years.
The U.S. Treasury Department announced that customs duty collections have exceeded $100 billion in a single fiscal year for the first time. Treasury Secretary Scott Bessent told Fox Business that this figure could potentially grow to $300 billion annually.
Why It Matters: Trump’s consideration of rebate checks funded by tariff revenue comes amid a period of significant economic activity. Despite initial concerns, Trump’s aggressive tariff policy has attracted a flood of foreign inflows, with investors buying American securities at a record-setting pace. This move, coupled with the potential for tariff-funded rebate checks, could have a substantial impact on the U.S. economy and the financial well-being of its citizens.
Notably, Trump idea of a rebate to Americans is not new. Earlier in the year, Trump had proposed a 20% ‘DOGE Dividend’ Tax Refund Plan, which would return a portion of the savings from his administration’s Department of Government Efficiency initiatives to American citizens. This move was also aimed at reducing the federal debt.
During the pandemic, Americans received three relief checks, two under Trump and one under Biden, to ease economic strain. While such rebates usually require Congressional approval via tax legislation, the recent tax and spending bill signed by Trump on July 4 includes new tax breaks but no tariff-based rebate provision.
READ MORE:
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
