President Trump
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Trump’s Tariff Rebate Proposal Faces Strong Opposition from Republicans and Economists

President Donald Trump’s latest proposal to counter criticism over his controversial tariffs is meeting resistance—even from members of his own party. The idea, floated last month, is a tariff rebate check. “We have so much money coming in, we’re thinking about a little rebate,” Trump told reporters.

Republican Senator Josh Hawley quickly embraced the concept, introducing a plan for a $600 tax credit for all Americans on their 2024 returns. The measure would mimic the popular stimulus checks distributed during the COVID-19 pandemic under both Trump and President Joe Biden—programs that Hawley also championed.

Despite the appeal such payments might have with voters, analysts and lawmakers are skeptical. MSNBC’s Ryan Teague Beckwith was blunt: “To be clear: This is not going to happen.”

Beckwith noted that if the rebates mirrored pandemic stimulus payments, they would cost roughly $164 billion—close to the entire revenue generated by tariffs in the first six months of the year. Many Senate Republicans argue the funds would be better spent reducing the national debt, which Trump has also said is a priority.

Josh Hawley
Michael Brochstein Sipa USA file photo

Senator Bernie Moreno, who has previously suggested Trump for the Nobel Peace Prize, called the proposal “insane.” “Oh God, no, insane. Two reasons. No. 1, we have a $37 trillion debt… No. 2, it’s extraordinarily inflationary. It’s fiscal stimulus,” Moreno told Semafor.

Other Trump allies also voiced skepticism. “I just don’t know that they’re necessary,” Senator Roger Marshall told The Washington Post. “The folks back home don’t feel like they’re being hurt by tariffs, just the opposite. Prices have stabilized.” Senator James Lankford offered an even sharper assessment: “I think it’s a bad idea,” he said, according to the Post.

In response to mounting criticism, a White House spokesperson told the Daily Beast, “As the President has said, tariffs are bringing in historic revenue for the federal government that can be used for the benefit of the American people. The Administration is considering multiple options for this windfall revenue.”

The tariff rebate proposal bears resemblance to a previously touted but unrealized idea: “DOGE dividends.” Endorsed by Elon Musk and Trump, the plan envisioned using 20 percent of $2 trillion in projected savings from Musk’s cost-cutting initiative to give every American a $5,000 tax credit.

Ultimately, “DOGE dividends” never materialized. By the program’s own disputed estimate, savings reached only $180 billion. Musk departed the White House, his relationship with Trump soured, and the plan quietly disappeared.

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