Senate Republican shuts down Trump’s tariff dividend plan

 Sen. Ron Johnson publicly rejected Donald Trump’s proposal to deliver $2,000 “tariff dividend” payments to Americans while appearing on Mornings With Maria on Fox Business.

Johnson responded directly to the proposal, saying, “We can’t afford it. I wish we were in a position to return the American public their money, but we’re not.”

He pointed out that the United States is presently dealing with a national debt of $38 trillion and has recorded an average of $1.89 trillion in yearly deficits over the last five years.

Johnson compared the existing financial situation to those of previous administrations, pointing out that Trump’s deficits prior to the pandemic averaged $800 billion each year, whereas former President Barack Obama’s last four years experienced deficits of approximately $550 billion annually.

He contended that with forecasts indicating $26 trillion in total deficits over the next 10 years, tariff revenue should be allocated towards reducing deficits instead of being given directly to citizens.

Trump’s proposal

Trump announced the plan on Truth Social, promising “a dividend of at least $2000 a person (not including high income people!)” and suggesting payments could be issued before the midterm elections.

He claimed tariffs imposed on imports from multiple countries were generating “trillions of dollars” in revenue.

The Committee for a Responsible Federal Budget calculated that providing tariff dividends each year to eligible Americans would amount to $600 billion annually, or $6 trillion over a decade.

In contrast, the Treasury Department anticipated tariff revenues to be $300 billion for 2025, while the Congressional Budget Office projected $2.8 trillion over 10 years.

Republican opposition in the Senate

Senate Majority Leader John Thune told reporters that tariff revenue should be used to reduce the deficit, stating, “The amount of revenue coming in from the tariffs is considered to be substantial at this point and hopefully can be put to a useful purpose, in my view one of which would be repaying the debt.”

This stance mirrors wider worries among fiscal conservatives that direct cash payments could exacerbate inflation and hinder attempts to stabilize federal finances.

Johnson warned that the current $2 trillion deficit projected for 2025 is “completely unacceptable” and insisted that Congress must prioritize deficit reduction

The Trump administration’s response

Treasury Secretary Scott Bessent has suggested that the Trump administration is considering limiting payments to individuals below a certain income threshold.

In an interview with ABC News’ This Week, Bessent said the tariff dividend could take “lots of forms, lots of ways.”

“It could be just the tax decreases that we are seeing on the president’s agenda,” he said.

Trump himself has offered shifting timelines, saying the checks would “probably” be distributed “prior to the middle of next year” or possibly later.

The proposal remains vague, with no clear legislative framework, and would require congressional approval before implementation.