- By Supratik Das
- Mon, 10 Nov 2025 06:54 PM (IST)
- Source:JND
US President Donald Trump has once again defended his aggressive tariff policy, claiming that it will directly benefit ordinary Americans. The president wrote on Truth Social, his social media platform, that "Record Investment in the USA, plants and factories going up all over the place. A dividend of at least USD 2000 a person (not including high-income people!) will be paid to everyone."
Trump described the move as a “reward to hardworking Americans”, arguing that the revenue generated from tariffs on foreign goods has made the United States “richer and stronger than ever.”
Trump Administration Explains Dividend Plan
To clear public confusion, US Treasury Secretary Scott Bessent elaborated on the administration’s plan in an interview with ABC News. He said the tariff dividends could be distributed in multiple forms, including tax reductions and direct fiscal measures aimed at easing the burden on middle-class families.
“The USD 2,000 dividend could come in many ways. It could mean no tax on tips, no tax on overtime pay, or even reduced social security taxes,” Bessent explained. “We are looking at ways to ensure that the benefits of tariff revenues reach every working American.”
According to Bessent, the funds for these dividends would come from the “trillions of dollars” collected through tariffs imposed on imports from several trading partners.
Trump Defends Tariff Strategy Amid Criticism
President Trump has intensified his defence of his tariff regime after the US Supreme Court recently raised concerns over its legality. Critics argue that tariffs have raised prices on goods and hurt American consumers.
However, Trump dismissed such concerns, calling his opponents “fools” who fail to see the long-term gains. “People who are against tariffs are fools! We are now the richest, most respected country in the world,” he said on his Truth Social platform. He further claimed that the policy has created a record stock market, a booming manufacturing sector, and the “highest ever” 401(k) retirement savings for Americans.
What Happens Next
Trump’s supporters posted on social media platforms that the tariff policy is restoring fairness in trade and reducing America’s dependence on foreign imports. But critics, including several economists, warn that the higher import taxes have contributed to rising inflation.
According to the Associated Press, consumer prices in September rose by 3 per cent compared to last year, with grocery and energy costs seeing sharp increases. Job growth, too, has slowed by nearly 23 per cent from the previous year. Despite that, Trump insists the tariff strategy will ultimately “rebalance trade” and help the country pay down its enormous USD 37 trillion national debt.
While President Trump has not yet announced a timeline or detailed eligibility criteria for the USD 2,000 dividend, the Treasury Department is reportedly drafting a framework to implement the plan. Officials say it could be rolled out as a combination of tax credits, reduced deductions, or one-time direct payments to eligible citizens.
With inputs from agency.