Former President Donald Trump announced on Truth Social a proposal to pay at least $2,000 per person to most Americans, funded by tariffs on foreign imports, excluding high-income earners. The goal is to generate revenue from U.S. imports and return a portion directly to citizens. Trump defended tariffs aggressively, claiming opponents are “fools” and asserting that tariffs have strengthened the U.S. economy.

The plan’s details remain unclear. Payments could be delivered as direct checks or through tax changes, healthcare credits, or other benefits. Treasury Secretary Scott Bessent suggested options like tax relief on tips, Social Security tax breaks, overtime tax cuts, or deductible auto loans. No official framework has been released for eligibility, timing, or exact distribution.

Challenges and skepticism are significant. Experts warn that tariff revenue may not cover the $2,000 dividend for all eligible Americans. Estimates suggest the total cost could reach hundreds of billions of dollars. Additionally, tariffs often raise consumer prices, potentially offsetting the benefit of the dividend. Legal uncertainty is another concern, as the Supreme Court is reviewing the president’s authority to impose wide-ranging tariffs under emergency powers.

The plan appears both political and economic: it highlights Trump’s support for tariffs while promising a tangible benefit to voters. However, analysts caution that while the idea is appealing, execution would face major legislative, financial, and legal hurdles.

Bottom line: Trump’s “tariff dividend” promises a direct payout to most Americans funded by import taxes, but specifics on distribution, funding sufficiency, and eligibility are unresolved. The plan is more of a bold proposal than an actionable policy at this stage, and experts remain skeptical about its feasibility.