Who pays for tariffs? Tariff revenue, rebate checks explained
President Donald Trump has made tariffs a staple in his second term. Who is paying for those moving rates? Sen. Josh Hawley wants rebate checks.
- Amidst inflation and rising costs, discussions are underway regarding a potential tariff rebate check for taxpayers.
- Sen. Josh Hawley introduced the American Worker Rebate Act of 2025, proposing a minimum of $600 per adult and dependent child, potentially totaling $2,400 for a family of four.
- While President Donald Trump mentioned the possibility of a rebate, Congress must approve any such proposal before funds are disbursed to taxpayers.
Americans hit hard by inflation and rising costs are still holding out hope for a possible stimulus check in 2025.
The latest idea being discussed is a tariff rebate check for taxpayers, which was recently mentioned by President Donald Trump after he was questioned about where tariff revenue may go.
Several days later, Missouri Republican Sen. Josh Hawley announced he was sponsoring a bill called the American Worker Rebate Act of 2025, which is the first step in making the check for taxpayers that Trump mentioned a reality. They would be similar to stimulus checks sent during the COVID-19 pandemic.
Here’s what to know about the American Worker Rebate Act and other previously discussed or rumored stimulus checks and refunds.
What did Trump say about possible rebate from tariffs?
On July 25, Trump answered a reporter’s question about the “tariff revenue coming in” and the “possibility of a rebate to the American public.”
“We’re thinking about that actually,” he said before adding, “we have so much money coming in, we’re thinking about a little rebate. But the big thing we want to do is pay down debt. But we’re thinking about a rebate.”
What is the American Worker Rebate Act of 2025?
The bill Sen. Hawley proposed after Trump’s comments is called the American Worker Rebate Act of 2025.
It would provide a minimum of $600 per adult and dependent child, or $2,400 for a family of four, according to news officials.
The benefit would be reduced by 5% for joint filers with an adusted gross income above $150,000 or single filers earning more than $75,000 individually.
According to an analysis from The Budget Lab at Yale released July 28, Trump’s tariffs could cost U.S. households an average of $2,400 in 2025 through higher prices passed on from companies paying higher tariff taxes.
The Treasury Department said on July 25 that the U.S. government posted a $27 billion surplus in June, following a $316 billion deficit in May. Customs duties totaled approximately $27 billion for the month, up from $23 billion in May and 301% higher than June 2024. On an annual basis, tariff collections have totaled $113 billion, or 86% more than a year ago.
The bill would allow for a larger rebate if the tariff revenue exceeds projections.
However, for any money to be sent to taxpayers, Congress has to approve the proposal for the rebate.
Is Trump giving out $2,000 stimulus checks?
No, this rumor has been circulating on social media and unverified websites for months. There has been no official mention or confirmation of an economic relief package in 2025 from the IRS or Congress.
Any news of such a stimulus check should be considered very cautiously and is likely misinformation.
What happened to DOGE stimulus checks?
There was previous discussion of a dividend or stimulus check coming from money the Department of Government Efficiency cut from other departments.
Though Trump, Elon Musk and some other politicians showed support for such a refund, the concept never really went anywere. A bill was not introduced in Congress, which would be the first step in approving it. There has been no concrete news on this bill for months.
