When payment could occur

Donald Trump has floated a new economic proposal on Truth Social, suggesting a nationwide cash dividend funded by tariff revenue. He said the plan would provide at least $2,000 per person, excluding high-income earners.

Under the idea, the federal government would collect revenue by imposing tariffs on imported goods and then return part of that money directly to U.S. citizens.

Trump argued that tariffs force foreign exporters to contribute more to the American economy while benefiting domestic households through direct payments.

He strongly defended the policy, dismissing critics as misguided and pointing to market strength and low inflation during his presidency as proof tariffs can work.

Specific details of the proposed “American Dividend” have not been released. It remains unclear how payments would be distributed, who would qualify, or whether the benefit would come as cash, tax relief, or another form.

Economists say tariff-funded dividends are uncommon, though they resemble revenue-sharing models like Alaska’s oil dividend. Supporters believe tariffs could boost U.S. manufacturing, while critics warn they may raise consumer prices and strain trade.

For now, the plan is a broad concept rather than a formal policy. Its feasibility would depend on legislative approval, implementation details, and how tariffs affect the wider economy and global trade.