Will you get a $600 tariff rebate? What to know about federal stimulus check
Will Americans get a rebate check from the government with the money from increased trade tariffs?
The stimulus idea remains uncertain, but the idea is picking up steam with the backing of President Donald Trump.
Republican Sen. Josh Hawley of Missouri introduced the idea in July to provide citizens with tariff rebate checks of $600, modeled after the direct payments issued by Congress during the pandemic.
The revenue the United States has gained from increased tariffs between January and August this year amounts to $159 billion, according to the Bipartisan Policy Center. That could pave the way for what Trump described as a “concept” during a White House cabinet meeting: a rebate check for Americans from tariff revenue.
“We have a lot of money coming in. It’s coming in tremendous numbers. There’s a concept of making a dividend to the people of this country who have paid a lot of taxes and got nothing for it,” the president said during a news conference on Tuesday reported by Newsweek. “Primarily we want to pay down debt, but there’s a possibility that we take a piece of it and make a dividend to the people.”
The increased tariffs could reduce the federal deficit by $4 trillion over a decade, according to the Congressional Budget Office. At the same time, these tariffs are affecting the price of consumer goods, and could cost American families over $2,500 more a year.
That financial burden comes at a time when the job market is slowing and chances of a recession are growing.
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What to know about potential tariff rebate checks
The American Worker Rebate Act, the legislation introduced by Hawley that hasn’t approved by the Senate or the House, proposes:
- Each working adult or child in a household receives a payment of $600, which would translate to $2,400 for a family of four.
- Decreased payments for families earning more than $150,000, individuals earning over $75,000, and heads of households making $112,500.
- Higher credit per person if tariff revenues exceed current projections for 2025.
Tariffs and economic uncertainty
Americans are not optimistic about the effects of tariffs on the economy, which don’t only affect their own wallets. Reduced business profits and the cost of raw material on the international market can jeopardize jobs.
A survey by Express Employment Professionals-Harris Poll revealed that 73% of job seekers believe no job is secure, and 67% reported they previously felt secure in their jobs, but now everything feels uncertain.
The most affected are Generation Z workers, the youngest, who should be entering entry-level jobs that allow them to start a career, and not just because of tariffs. A Stanford University study found that workers 22 to 25 are the most affected by AI, including jobs in programming and customer service, which have decreased by 13% relative to other less affected jobs.
The payment from tariff revenue could come up for debate in Congress when lawmakers return to their functions at the beginning of September.
For now, Americans have newly approved tax savings on tips and overtime work, a $6,000 tax deduction for seniors, and a deduction of up to $10,000 for loans to buy U.S.-made cars.
