President Donald Trump announced a plan Sunday to send at least $2,000 to most Americans, funded by tariff revenues. He also sharply criticized opponents of his trade policy, calling them "fools" in a Truth Social post. The announcement comes as the Supreme Court reviews challenges to his tariff authority.^{[1][2][3][4][5][6][7][8][9]} ### Tariff Policy and Dividend Plan President Trump stated that every American, excluding high-income individuals, would soon receive a payment of at least $2,000 from tariffs collected by his administration.^{[1][3][4][5][6][7][8][9]} He did not provide specific details on how or when these dividends would be distributed.^[1][3][6][8] In his Truth Social post, Trump defended his aggressive tariff policy. He claimed the United States had become "the richest, most respected country in the world, with almost no inflation, and a record stock market price."^{[1][2][4][6][8]} He also said 401(k) retirement accounts were "highest EVER" and factories were "going up all over the place."^{[1][2][4][6][8]} Trump asserted that the country is collecting "trillions of dollars" from tariffs.^{[1][2][4][6][8]} He said this money would help reduce the national debt, which he cited as $37 trillion.^{[1][2][4][6][8]} The administration, he added, would soon begin paying down this debt while issuing the $2,000 per person dividend.^{[1][2][3][4][5][6][7][8][9]} ### Supreme Court Scrutiny and Legal Challenges The President's remarks coincide with ongoing legal scrutiny of his tariff policies. The U.S. Supreme Court is currently reviewing challenges to whether he exceeded his executive powers by imposing sweeping tariffs on imports.^{[1][2][3][4][6][8][9]} Arguments in these cases began on November 6.^[4][6][8] The cases examine the administration's use of the International Emergency Economic Powers Act (IEEPA) to implement broad tariffs.^[3][8][10] Both conservative and liberal justices on the high court have expressed skepticism about the government's arguments defending the policy.^[3][6][8] However, they also questioned arguments against the tariffs.^[3] Trump has repeatedly dismissed the legal challenges. He argues that tariffs are his strongest economic weapon.^[1] He insists the policy has made America stronger, wealthier, and more independent.^[1] U.S. Treasury Secretary Scott Bessent had previously stated in August that the administration's focus was on using tariff revenue to pay down the national debt, which stood at $38.12 trillion.^[1][11] ### Economic Context and Criticisms The proposed dividend and the broader tariff policy have drawn attention from economists and policy experts. While tariffs do generate revenue, experts warn that the costs often get passed on to consumers.^[11] This can lead to higher prices for imported goods.^[3][12][11] The U.S. collected about $195 billion in tariff revenue during fiscal year 2025.^[3][11] This amount represents less than 1% of the national debt, which is over $38.1 trillion.^[1][3][11] Analysts suggest that relying on tariffs to fund direct payments or significantly reduce the debt could have serious economic side effects.^[11] Economist and former Under Secretary of the U.S. Treasury for International Affairs Jay Shambaugh stated that "Tariffs are a damaging and inefficient way to raise funds."^[11] Some analyses indicate that a 10% tariff on all imports could add $1,700 per year in costs for a typical middle-class household.^[12] Tariffs could also boost the inflation rate.^[12][11] The idea of tariff rebates is not entirely new. In July, Senator Josh Hawley introduced legislation to send $600 rebate checks to Americans from tariff revenues.^[3][7][11] That proposal did not advance in the Senate.^[11] President Trump himself had floated a similar idea in October, mentioning checks in the $1,000-$2,000 range.^[3][7] Any program for direct payments from tariff revenue would likely require congressional approval. Congress has not historically reallocated tariff revenue on this scale.^[9][11] The dividend proposal also comes amid an ongoing government shutdown, which has affected food assistance payments.^[9] President Trump's administration has stated that tariffs are central to his plan to reverse economic damage and boost American prosperity.^[10] He has also proposed extending 2017 tax cuts and eliminating taxes on tips and Social Security benefits.^{[12][13][14][10]} However, the impact of these policies remains a subject of debate among economists.^[12][14]