U.S. President Donald Trump has announced a major proposal to distribute annual dividends of $2,000 to every American citizen, funded through revenue collected from tariffs on imported goods. Making the declaration on his social media platform, Trump described the initiative as a way to share the financial benefits of his trade policies with the public. He strongly defended tariffs, calling them essential for America’s economic stability, and stated that without them, the country would be “completely destroyed.”
Trump claimed that tariffs had strengthened the U.S. economy, increased stock market performance, and boosted 401(k) balances while spurring the creation of new manufacturing jobs. He argued that tariffs, unlike taxes, are paid by other countries, not American citizens, and said the revenue generated could also help reduce the national debt. “Tariffs have made America a rich nation,” he asserted, emphasizing that the policy benefits ordinary Americans more directly than traditional tax reforms.
However, the proposal has triggered criticism from economists and even members of his own Republican Party, who argue that the cost of tariffs is ultimately borne by American consumers and importers. A recent federal appeals court ruling questioning Trump’s use of emergency powers to impose tariffs has also cast uncertainty over the funding for his $2,000 dividend plan. The court’s intervention has raised legal and political challenges that could determine the fate of Trump’s ambitious economic proposal in the coming months.