Former President Donald Trump announced a plan to distribute $2,000 payments to most Americans, excluding high-income earners, funded entirely by tariff revenues collected under his administration. The proposal was detailed in a Truth Social post, where Trump defended his trade policies, stating, "People that are against Tariffs are FOOLS!" and claiming tariffs have made the U.S. "the richest, most respected country in the world, with almost no inflation, and a record stock market price."
Trump did not specify a timeline for the payments or distribution methods but asserted that tariff revenue is fueling foreign investment and economic growth. However, the plan requires Congressional approval, and Treasury Secretary Scott Bessent indicated that such payments "probably couldn’t happen right now" without legislative backing. If passed, the initiative could inject up to $500 billion into the economy, with analysts projecting a 0.5–1% inflation risk, similar to past stimulus measures.
Small business owners, like Eunice Byun of Material Kitchen and Anjali Bhargava of Anjali’s Cup, reported significant struggles due to tariff-induced cost increases, highlighting the policy's mixed impacts. Meanwhile, the Supreme Court is reviewing the legality of Trump's use of the 1977 International Emergency Economic Powers Act to impose tariffs, which could reduce the average U.S. tariff rate to 6.5% if overturned. A temporary agreement with China has led to a 10% reduction in tariffs on Chinese imports, but trade tensions persist.
Economists draw parallels to the 2020 federal stimulus, which boosted cryptocurrencies like Bitcoin and Ethereum, suggesting potential positive effects on crypto markets if the tariff dividend is implemented.
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