WASHINGTON — President Trump’s proposal for $2,000 checks funded by tariff dividends relies on the government collecting vast sums in import duties. However, there’s a possibility that the Supreme Court might overturn many of these tariffs, forcing the government to repay the funds if it decides against the use of emergency powers for such impositions.
This leads to a pressing question: What’s the alternative plan if the tariffs are deemed invalid? Will those promised checks still be issued as Trump indicated by the middle of next year?
Currently, it seems the Trump administration is somewhat uncertain about this situation.
During an appearance on Fox News’ “Sunday Morning Futures,” Treasury Secretary Scott Bessent expressed hope that the Supreme Court wouldn’t invalidate the tariffs. He insinuated that the issue at hand might be too complicated for the court to reverse its previous stance.
Bessent remarked, “But what will happen if that happens? Would they plan reimbursements for companies? How does that actually reach consumers? Wouldn’t it just benefit importers? I doubt the Supreme Court wants to navigate that chaotic scenario.”
Interestingly, Trump suggested that even if the tariffs were annulled, there’s still a possibility for checks to be distributed, though he didn’t go into details.
Bessent also proposed the idea of restricting dividends to those earning less than $100,000 annually.
When asked about potential outcomes if the Supreme Court ruled against him, Trump acknowledged, “We would need to devise another strategy. Something else would have to be done.” He added, “It would be a very disappointing day for our nation.”
This month, the Supreme Court listened to arguments in a case that challenges Trump’s application of the International Emergency Economic Powers Act, examining whether he was legally justified in imposing numerous tariffs. A ruling is expected by the end of June.
During the oral hearings, most justices, including those appointed by Trump, pressed the administration’s counsel, Attorney General John Sauer, with challenging inquiries regarding the tariffs’ legality under the law.
Many spectators left the proceedings thinking that the court appeared skeptical about Trump’s broad application of the law, which oddly does not mention “tariff.”
Since the implementation of IEEPA tariffs, approximately $90 billion has been collected as of September 23, according to U.S. Customs and Border Protection data.
Trump announced the $2,000 dividend plan shortly after a court took a closer look at Sauer regarding the legal grounding of enforcing tariffs under the IEEPA for actions like “human trafficking” and “reciprocal” tariffs.
Specifics about the dividend plan are vague, but Bessent has mentioned the notion of capping the payout to Americans earning under $100,000.
If the checks were restricted to those with incomes below $100,000, it could total around $300 billion, as estimated by Erica York from the Tax Foundation.
