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White House Studies $2,000 Tariff Dividend as Bessent Tees Up Tariff Cuts on Coffee and Bananas

Legal and budget hurdles leave the rebate uncertain despite discussion of income caps or tax-code alternatives.

Overview

  • Press secretary Karoline Leavitt said the administration is committed to pursuing the idea and is exploring legal pathways as economic advisers review options.
  • Treasury Secretary Scott Bessent said a roughly $100,000 income cutoff is under discussion and the benefit could be delivered through tax changes rather than direct checks.
  • Bessent previewed "substantial announcements" in coming days to lower prices by reducing tariffs on items the U.S. largely does not grow, highlighting coffee and bananas.
  • Budget analysts say tariff receipts fall far short of the cost of $2,000 payments, warning of large deficits and possible inflation; official tallies show more than $220 billion collected so far against costs estimated in the hundreds of billions.
  • The Supreme Court has questioned the administration’s emergency tariff authority, and experts note any broad payments would require congressional approval, with a court loss potentially forcing refunds to importers.