Trump Administration Explains How Americans Will Receive $2,000 Tariff Dividend

President Trump has warned that a Supreme Court ruling against his tariff policies would be a "disaster" for the nation.

The Trump administration has clarified details about the proposed $2,000 (approximately Rs 1,77,000) tariff dividend that the President recently announced on social media. US Treasury Secretary Scott Bessent explained that these dividends could be distributed to Americans through various mechanisms, with high-income individuals excluded from the benefits.

In an interview with ABC News, Bessent revealed that while he hadn't directly discussed tariff dividends with Trump, he could outline several potential avenues for distributing these monetary benefits.

Regarding the distribution methods for tariff dividends, Bessent stated, "The $2,000 dividend could come in lots of forms, in lots of ways. It could be just the tax decreases that we are seeing on the president's agenda — no tax on tips, no tax on overtime, no tax on Social Security – deductibility on auto loans."

On Sunday, Trump defended his tariff strategy, asserting that these aggressive levies have transformed the United States into the "richest" and "most respected" country globally. The President dismissed critics as "fools" while promising that every American—except wealthy individuals—would soon receive at least $2,000 from tariff revenues collected by his administration.

When questioned about Trump's statements, Bessent elaborated, "Over the course of the next few years, we could take in trillions of dollars." He emphasized, "But the real goal of tariffs is to rebalance trade and make it more fair."

President Trump has increasingly defended his tariff policies since the US Supreme Court recently expressed concerns about their legality. The Court raised the possibility that numerous tariffs could potentially be overturned, which might necessitate over $100 billion in refunds and eliminate a cornerstone policy of his second term.

Trump has emphatically stated that an adverse ruling from the Supreme Court would constitute a "disaster."

The case under consideration partially involves the Trump administration's April 2 "Liberation Day" tariffs, which impose taxes ranging from 10 percent to 50 percent on most US imports, varying by country of origin. Trump maintains that these duties are justified to address the nation's persistent trade deficit.