$2,000 for Every Citizen? Donald Trump’s Tariff Dividend Sparks Legal and Economic Debate

Washington: US President Donald Trump made a big economic announcement on Sunday, saying that soon most of the American citizens will be given a direct cash amount of $2000. This amount has been named 'tariff dividend,' and its funding will be raised entirely from import duty, i.e., tariff. Trump made this announcement on his social media platform, Truth Social.

What is Trump's 'tariff dividend' plan?

Trump said the US is "making trillions of dollars from tariffs," and now this money will be delivered directly to citizens. According to him, this plan will be the first step towards reducing the country's debt of 37 trillion dollars. He claimed that this amount would be sent “directly to the bank accounts of the American people.” However, it has not yet been made clear who will get this benefit and when the payment will start.

Who will get the benefit of $2000?

Trump indicated in his statement that high-income citizens may be excluded from the plan. According to him, its aim is to provide relief to “middle-class and lower-income families” so as to boost consumer spending amid rising inflation and interest rates. But the process of determining the exact eligibility criteria is still going on.

Why the controversy over Trump's tariff policy in the Supreme Court?

This announcement comes at a time when Trump's tariff policies are under legal scrutiny in the US Supreme Court. The court is deciding whether Trump has abused his powers under the International Emergency Economic Powers Act (IEEPA). Lower courts have already ruled some tariff decisions exceed the president's authority. The Supreme Court's decision will determine whether any future president can raise revenue by imposing tariffs unilaterally.

Trump's claim: Economy is strong; America is a rich country

Trump defended his decision, saying that his economic policies have given new strength to American manufacturing. “Our stock market is at record highs, employment is growing, and America is the richest country in the world today,” he said. According to US Treasury Department data, $195 billion in tariff duties are expected to be collected in fiscal year 2025—an all-time high.

What is the reaction of citizens and experts?

After this announcement, both enthusiasm and curiosity are being seen among American citizens. People want to know when and who will get this money. Economists say that if this scheme is implemented, consumer spending will increase, but at the same time the pressure of inflation and tariff costs may also increase. Now all eyes are on the Supreme Court's decision and the official notification of the White House.