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Trump Touts Tariff Success, Floats $2,000 "Dividend" Checks for Americans

President Donald Trump vigorously defended his tariff policy, claiming it has dramatically reduced the U.S. trade deficit and spurred domestic factory investment without causing significant inflation. He proposed using the substantial revenue generated from tariffs to issue direct payments to Americans, suggesting a "$2,000 dividend" that might not require Congressional approval. Trump acknowledged a pending Supreme Court challenge to his tariff authority but maintained they are vital for national security and revenue. His comments signal a continuation of tough trade policies, impacting exporting nations like India for the remainder of his term.

Key Points: Trump Defends Tariffs, Proposes $2,000 Dividend from Revenue

  • Tariffs cut US trade deficit
  • Revenue could fund public dividends
  • Claims tariffs don't cause inflation
  • Spurs domestic factory investment
  • Legal challenge pending in Supreme Court
2 min read

Trump defends tariffs, floats $2,000 dividend

President Trump claims tariffs cut trade deficits, fuel investment, and could fund direct $2,000 payments to Americans without Congressional approval.

"We'll be able to issue at least a $2,000 dividend. - Donald Trump"

Washington, Jan 21

President Donald Trump on Tuesday defended his tariff policy, saying it helped cut US trade deficits and could fund direct payments to Americans.

At a White House news conference marking one year since his return to office, Trump said tariffs were a key reason the US economy was performing strongly. "It's because of tariffs and the proper use of tariffs," he said.

Trump claimed trade gaps had narrowed sharply. "We have a 62 per cent reduction in our trade deficit," he said. He later said the deficit had been cut by "77 per cent in one year." He rejected warnings that tariffs fuel inflation. "Everyone said tariffs would cause inflation," he said. "We have very little inflation."

The president said tariffs pushed companies to build factories in the United States. He said businesses were choosing domestic production to avoid import duties. "Plants are being built all over the country," Trump said. He also cited what he called "$18 trillion in commitments for new investments."

Trump raised the idea of sending money back to the public using tariff revenue. Asked about $2,000 rebate checks, he said it was possible. "We'll be able to issue at least a $2,000 dividend," he said. Trump added that he believed Congress might not be needed. "I don't think we would have to go the Congress route," he said.

He said any payments would likely be subject to income limits. Trump also said tariff revenue could be used to reduce government debt. "We have so much money coming in from tariffs," he said.

Trump acknowledged a legal challenge to his tariff authority now before the US Supreme Court. He said an adverse ruling could complicate the issue. Even so, he defended tariffs as vital to security and revenue. "We have tremendous national security because of tariffs," he said.

The president also referred to new global trade deals, including an agreement between the European Union and South American countries. He said the US was no longer being "ripped off" in trade.

Trump again linked tariffs to manufacturing jobs. He warned that without them, foreign competitors would dominate key industries. "If we didn't have tariffs, you wouldn't have any car dealers," he said.

For India and other exporting nations, Trump's comments suggest US trade policy will remain tough. Tariffs and trade pressure are likely to stay central to Washington's economic strategy during the remaining three years of the Trump Administration.

- IANS

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Reader Comments

P
Priya S
Interesting idea about the dividend, but giving $2000 from tariff money sounds like a short-term gimmick. What about the long-term cost to consumers? We saw how US tariffs on steel affected global prices. Hope our policymakers are preparing for ripple effects. 🤔
R
Rohit P
"Very little inflation"? That's not what my cousin in Texas says! Groceries and rent are through the roof. This policy might bring factories back to the US, but it makes everything more expensive. Not sure it's a win for the common American.
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Sarah B
From an Indian perspective, we should take this as a wake-up call. 'Make in India' needs to be stronger than ever. We can't be overly reliant on any single market. Time to boost domestic consumption and trade with Africa, ASEAN more aggressively.
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Vikram M
The claim about bypassing Congress is worrying. Checks and balances exist for a reason. Trade policy affects millions of livelihoods globally, including ours. It shouldn't be decided by executive whim alone.
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Karthik V
Honestly, if this brings manufacturing jobs back to the US, good for them. Every country has the right to protect its industry. But we must do the same. Let's use this as an opportunity to become more self-reliant in electronics and defense manufacturing. 🇮🇳

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