US President Donald Trump said direct tariff gains of “at least” $2,000 would go to most Americans.
A truly social PostTrump said the U.S. is generating “trillions of dollars” in tariffs and said the funds would reduce the nation’s $37 trillion national debt and finance t.That profit.
“At least $2000 per person (not including high earners!) will be paid each,” Trump wrote. The announcement helped boost cryptocurrency prices.
Bitcoin Over 3,103,000 were traded, climbing 1.93% over the past 24 hours. Ether so rose 4.75% to exceed 3,500, while Solana 2.49% increase above $160. The Coindesk 20 (CD20) index rose more than 1.5%.
The modest rally comes amid a broader weekly rout that saw the CD20 index sink nearly 15 percent before starting a recovery. Bitcoin is still down 5.7% for the week, while ETH is down 7.5%.
Still, the reaction suggests that merchants may be at the cost of higher consumer spending and the potential for a surge in the crypto market if and when these funds reach recipients.
Key considerations
While the news of the tariff dividend has generated excitement in the market, it is important to note that the payout is unlikely to happen immediately.
Only the president can authorize or implement this payment, as federal spending decisions rest with the legislative branch and any plan to distribute revenue-collected funds requires approval and appropriation by Congress, as Andy Konstan, CEO and CIO of Nimond Spring Advisors, said. denoted by x.
Given the ongoing debate and legal challenges over Trump’s tariffs, the prospect of swift congressional action appears uncertain, given bullish frustrations.
Meanwhile, tax and budget experts have pointed out that the total amount of revenue received from the levies so far falls short of the funds needed to cover payments to the large number of eligible recipients.
“The president proposed a tariff “benefit” of just $2,000 for each person, excluding high-income earners. If the cutoff is $100,000, the cost to 150 million adults would be close to $300 billion. If children qualify, that goes up. The only problem is, the new tariffs have raised $120 billion so far,” Erica York, “Federal Tax Policy,” said in a statement. York, “Federal Tax Policy,” Noted on x.
He added That after accounting for the full budgetary impact of revenues, the fiscal picture becomes less favorable.
The broader economic impact on taxable income effectively increases income and payroll tax collections by about 24 cents for every dollar raised in tariff revenue. After adjusting for this interaction, the net revenue generated by the tariffs is about $90 billion — less than the $300 billion proposed for the waiver program, York said.
That difference means Trump could face challenges to the $2,000 profit from tariff revenue alone.
15:53 UTC: Adds a section on potential legislative and budget challenges to Trump’s plan.