Once again, the statements made by the U.S. president, Donald Trump, have made trades and tariffs the focus of political discussions nationwide. The latest such statement was made in favor of his declaratory policy discourse on tariff politics, with Trump calling the tariff critics “fools” and declaring almost an additional $2,000 for most Americans. That money has come from the “massive” revenues that the government has collected through the new increased tariffs on foreign imports. Donald Trump Calls Tariff Critics ‘Fools’, Promises $2,000 Dividend for Americans.

Where Are All the Tariff Revenues Going?

Trump argued that tariffs though decried by some as being liable for increased consumer prices for items imported have in actuality turned out to be a massive source of national revenue. He said the administration has already collected “trillions” in tariff revenues, which shall mostly be used to pay off debts as well as provide cash injections into the hands of the U.S. citizens. Such a “tariff dividend” would exclude higher-income groups and be directed only at the middle to lower-income earners, reportedly.

Though the mention of any implementation timeline or mechanism for distribution has yet to see the light of day, Trump was rather emphatic that for the first time in a while, the citizens of the U.S. are directly benefiting greatly from policies created to protect industries and jobs in the country.

Economists and Critics Remain Skeptical

As Trump declared victory for Americans, yet some economists had the issue of tariff money translated as reversible inflation upon consumers and businesses. Opposition is of the thought that, to be specific, the costs of the tariff are commonly passed down to buyers.

Legal observers also indicated that some of the earlier tariffs under Trump were still caught in courts. There are reports that the Supreme Court is looking to consider taking up a case challenging his broad tariff powers during the prior term.

Also Read: Trump Tariff Bomb Over? America Plans Duty Relief for Indian Goods

What Awaits the “Tariff Dividend”

If ever enjoined, the proposed $2,000 personally direct dividend from trade policy would be one of the most overt benefits extended to the American people. Being complemented as another high point for ways to actually mediate citizen power to leverage local manufacturing, other views argue that the system is going to potentially increase tensions and inflationate the situation.

Share

• 
• 
• 
• 
• 
•