Trump’s $2,000 ’Tariff Dividend’ Checks: A Bold Play for American Wallets in 2025

In a move that's already sparking debate, former President Trump unveils a controversial plan to send $2,000 checks to most Americans—funded by tariffs. Dubbed the 'tariff dividend,' this proposal could shake up household budgets and trade policies alike.

Who wins, who loses, and is this just another political IOU? We break down the implications as Washington's favorite economic weapon gets repackaged as voter candy.

Funny how tariffs suddenly become popular when they're buying votes instead of starting trade wars. The ultimate Wall Street bailout—except this time, it's Main Street holding the bag.

Tariffs squeeze small businesses across the U.S.

While TRUMP credits tariffs for boosting government income, small business owners across the U.S. say the same policies are putting them under. Unlike large companies that can absorb rising costs, many small businesses are being pushed to the edge.

Eunice Byun, CEO of Material Kitchen, said the complexity of her operations has increased dramatically.

“We’ve definitely taken it on the chin year-over-year in terms of our top line revenue,” Eunice told CNBC, explaining how her company, which sells kitchenware, is struggling to manage supply chains and pricing.

Anjali Bhargava, who owns Anjali’s Cup, a company that sells turmeric and chai blends, also said she can’t afford to stockpile products because of rising costs. “It’s been really frustrating because I don’t have the resources to stockpile,” Anjali said, adding that tariffs are now a threat to her entire livelihood.

The Small Business Administration estimates that 36 million small businesses operate in the U.S., contributing roughly 43% of the national GDP, and many of them are facing the brunt of these trade policies without the kind of insulation larger corporations enjoy.

Supreme Court challenges tariff power as Trump targets more countries

The Supreme Court is now looking into whether Trump’s heavy use of emergency powers under the 1977 International Emergency Economic Powers Act to justify the tariffs is even legal.

The Court hasn’t ruled yet, but if it decides against Trump, the U.S. average tariff rate could drop to 6.5%, a number not seen since before his April 2 “Liberation Day” announcement.

That MOVE had added new tariffs on dozens of countries, with India, China, Brazil, and even Switzerland among those targeted.

In a temporary agreement reached last week between Trump and Chinese President Xi Jinping, the U.S. agreed to reduce tariffs on Chinese imports by 10% and hold off on more increases for a year.

But even with that pause, tensions remain, especially over both countries’ tight grips on certain key exports. The trade standoff isn’t expected to go away anytime soon.

Chinese state media reported that some researchers believe the Supreme Court won’t completely block Trump’s tariffs, despite some justices questioning their legitimacy.

The same reports cited Treasury Secretary Scott Bessent, who said the U.S. would keep current tariff levels in place, regardless of what the court ultimately decides.

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