Trump suggests the government could issue rebate checks to Americans from the tariff revenue collected this year
President Donald Trump said Friday that his administration is weighing the possibility of issuing rebate checks to Americans, using funds collected from the surge in tariff revenue generated under his trade policies.
“We’re thinking about a little rebate,” Trump told reporters before boarding Air Force One for a four-day trip to Scotland. “But the big thing we want to do is pay down debt. But we’re thinking about a rebate.”
The idea, which Trump has floated in the past, comes amid mounting scrutiny over the fiscal impact of the recently passed One Big Beautiful Bill Act, a sweeping tax and spending package signed into law on July 4. The measure is expected to significantly increase the federal deficit, with forecasts from the Bipartisan Policy Center projecting a $3.4 trillion rise in the national debt over the next decade. Their analysis is based on estimates from the Congressional Budget Office and the Joint Committee on Taxation.
Trump suggested that any rebate program would likely be targeted. “It could be for people of a certain income level,” he said, without specifying any thresholds.
According to Treasury Secretary Scott Bessent, the federal government has brought in around $100 billion in tariff revenue so far this year, with that number potentially rising to $300 billion annually. The administration’s higher import duties, part of its ongoing trade policy overhaul, have been levied on a range of goods coming from countries including China and the European Union.
While these tariffs are technically paid by U.S. importers—retailers like Walmart or manufacturers such as Ford—they have so far largely absorbed the additional costs. However, recent inflation data suggests that higher prices are beginning to trickle down to consumers.
The rebate idea echoes previous discussions from earlier this year, when Trump mentioned using a portion of the projected savings from Elon Musk’s cost-cutting task force—dubbed the Department of Government Efficiency (DOGE)—to fund direct payments. During the COVID-19 pandemic, Americans received three rounds of stimulus checks, two of which were authorized under Trump’s first administration.
Rebate checks, if pursued, would likely require congressional approval and new tax legislation to allow the Treasury Department to distribute payments through the tax code.
The July 4 tax bill does contain new breaks, but none tied directly to tariff revenue. Some of the legislation’s provisions are aimed at lower- and middle-income taxpayers. For example, a new $6,000 deduction for seniors begins phasing out at $75,000 in income for single filers and $150,000 for joint filers.
Despite the possible rebate, the president maintained that his primary fiscal priority remains tackling the ballooning $36.7 trillion national debt.