Important points
- President Trump is proposing a $2,000 “tariff dividend” for most Americans, funded by U.S. tariff revenues.
- The market and Bitcoin soared following the announcement, mirroring past stimulus-driven bull markets.
- The fate of the plan hinges on a Supreme Court ruling on the president’s tariff powers.
President Donald Trump has announced a new plan that could give most Americans $2,000 “tariff dividend” checks. This promise, shared on his Truth Social account, immediately sparked excitement across financial markets, especially in the world of Bitcoin and digital assets.
President Trump said the money would come from U.S. tariff revenue collected from other countries. “Everyone except the highest earners will receive a dividend of at least $2,000 per person.” he wrote.
He also defended his trade policy, adding: “Those who oppose tariffs are idiots!”claimed that the United States is now “the richest and most respected country in the world, with little inflation and stock prices at record levels.”
The proposal would give money directly to Americans, similar to stimulus checks sent during the coronavirus pandemic. President Trump called it a way to “give American money back to the American people.”
However, big questions remain about this plan. The White House has not released official details about who will be eligible, when the payments will be made or how they will be distributed.
Treasury Secretary Scott Bessent said he had not yet discussed the plan in detail with the president, but suggested the idea could come to fruition “in a variety of forms and ways.”
The announcement comes as the U.S. Supreme Court considers whether the president has the legal authority to impose tariffs without Congress. This decision may also determine whether a “tariff dividend” is possible.
President Trump called the Supreme Court’s review “ridiculous,” saying:
“The President of the United States is allowed to suspend all trade with foreign countries (which is much more onerous than tariffs!) and license foreign countries (and is fully authorized by Congress!), but he is not allowed to impose simple tariffs on foreign countries, even for national security purposes.”? ”
In prediction markets like Calci and Polymarket, traders are betting that the Supreme Court will not approve President Trump’s tariff structure, with only about a 20% chance of success.
Digital asset markets reacted almost instantly to President Trump’s message. Bitcoin soared from less than $102,000 to nearly $104,000 within minutes, rising to $106,000 late Sunday night.
Investors are linking the surge to expectations that the new payments will send new money into Bitcoin, similar to the 2020 and 2021 stimulus checks. “I only know that stocks and Bitcoin rise in response to stimuli.” said investor Anthony Pompliano.
Kobeisi Letter analysts posted: “Cryptocurrencies soared after President Trump announced he would pay a $2,000 tariff “dividend” to Americans. ” They added: “Interest rate cuts + record highs + AI + economic stimulus. Get it right.”
Many remember what happened when the U.S. government mailed out checks during the pandemic. Millions of people received up to $1,200, and some used the money to buy Bitcoin. This new wave of buyers helped start a massive bull market.
Analysts estimate that if someone had invested their $1,200 coronavirus stimulus check into Bitcoin in 2020, Bitcoin would have grown about 1,500% by 2025.
The Kobeisi letter predicted that about 85% of American adults would be eligible for Trump’s proposed dividend. That could put billions of dollars in circulation, some of which could end up in Bitcoin or the stock market.