Author: Jin Shi Data

Last Sunday, U.S. President Trump declared that he would distribute "at least $2,000 per person" to all Americans except for the "high-income group," stating that the U.S. has become a wealthy country due to its tariff policies.

"Those who oppose tariffs are fools! We are now the richest and most respected country in the world, with inflation nearly at zero, the stock market hitting all-time highs, and 401k retirement accounts at their highest ever," Trump wrote in a tweet.

He added, "We are collecting trillions of dollars and will soon start paying off the massive $37 trillion debt. The U.S. is receiving record investments, and factories are blooming everywhere. Everyone will receive at least a $2,000 bonus (excluding high-income groups!)".

Treasury Secretary Basant stated in an interview on ABC's "This Week" last Sunday that he has not yet discussed the proposed bonus plan with Trump.

"This $2,000 bonus could be realized in various forms and through multiple channels," Basant told the host, "It could be part of the tax cuts we are advancing in the president's agenda—such as tax exemptions for tips, overtime pay, Social Security, and tax deductions for auto loans."

Trump's statement released on his Truth Social platform comes after the White House defended its extensive use of tariff powers in front of the Supreme Court last week. The justices expressed skepticism about Trump's overuse of the International Emergency Economic Powers Act.

Trump's public proposal for Americans to receive $2,000 from tariff revenues also comes after the Democratic Party's victories in elections across the country last week. From moderate to progressive candidates, the Democrats ran disciplined campaigns focused on affordability and the cost of living.

Basant emphasized that the primary purpose of tariffs is not revenue generation (which falls under Congress's jurisdiction) but rather addressing what the government sees as unfair trade imbalances.

"The focus is not on generating revenue but on rebalancing," Basant stated, "Revenue is generated initially. As rebalancing occurs and jobs return, it will translate into domestic tax revenue."

However, tariffs have already generated billions of dollars in revenue. As of September, the U.S. government has collected $195 billion from tariffs, which are taxes paid by businesses when importing goods from abroad.

Compared to the previous fiscal year's tariff revenue, this represents a 250% increase, adding an additional $118 billion.

According to Treasury data, tariffs are expected to generate about $3 trillion in revenue over the next decade.

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