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U.S. President Donald Trump talks to reporters as he departs the White House on July 25, 2025 in Washington, DC. Trump is traveling to his Balmedie golf courses in Scotland this week. <\/p>\n
Chip Somodevilla | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n
President Donald Trump<\/a> said the administration is considering a rebate for some consumers from revenue raised by higher tariffs<\/a> on U.S. trade partners.<\/p>\n When asked by a reporter on Friday at the White House about a possible rebate for Americans from tariff revenue, Trump said:\u00a0\u201cWe\u2019re thinking about that. We have so much money coming in, we\u2019re thinking about a little rebate.\u201d<\/p>\n \u201cThe big thing we want to do is pay down debt,\u201d Trump said. \u201cBut\u00a0we\u2019re thinking about a rebate.\u201d<\/p>\n \u201cA little rebate for people of a certain income level might be very nice,\u201d he said.<\/p>\n It\u2019s unclear whether a rebate could happen without Congressional approval. If enacted, it\u2019s unknown whether the rebate would come via stimulus checks<\/a> or another form of tax relief, experts say.<\/p>\n More from Personal Finance:<\/strong> \u201cIt\u2019s kind of unlikely that they would go ahead and do that,\u201d said Tax Foundation senior economist Alex Durante. \u201cBut I wouldn\u2019t put anything past this administration.\u201d<\/p>\n The Treasury Department reported an unexpected surplus<\/a> for June, with a boost from tariff revenue. Customs duties totaled roughly $27 billion for the month, compared to $23 billion in May. The duties reflect a 301% gain from June 2024.\u00a0\u00a0\u00a0<\/p>\n<\/div>\n I would prefer that the revenue was used for deficit reduction rather than just cutting checks to people.<\/p>\n Alex Durante<\/p>\n Tax Foundation senior economist<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/blockquote>\n Trump\u2019s rebate idea comes as a chorus of lawmakers and policy experts voice concerns about the federal budget deficit.<\/p>\n \u201cI don\u2019t think [a rebate] would be particularly good policy,\u201d Durante said. \u201cI would prefer that the revenue was used for deficit reduction rather than just cutting checks to people.\u201d<\/p>\n Enacted in early July, Trump\u2019s \u201cone big beautiful\u201d tax-and-spending package<\/a> could add an estimated $3.4 trillion<\/a> to the deficit through 2034, according to a conventional score released by the Congressional Budget Office this week.<\/p>\n<\/div>\n The motivation for sending the direct payments would be different than they were during the Covid pandemic, when many households were losing income or unable to work, said Joseph Rosenberg, senior fellow at the Urban-Brookings Tax Policy Center\u2019s tax and income supports division.<\/p>\n Now, the federal government is imposing tariffs that will cost U.S. households<\/a>, and this would be a way of helping those individuals and families, Rosenberg said.<\/p>\n<\/div>\n Because Congress just passed the very expensive \u201cbig beautiful\u201d budget and tax legislation, rebates to individuals could exacerbate the effects on the federal budget deficit, he said.<\/p>\n The rebates would reinforce the inflationary effects of the tariffs that already exist, Rosenberg said.<\/p>\n \u201cPeople will go out and spend some of that money, and that would further put upward pressure on prices and probably magnify inflationary effects,\u201d Rosenberg said.<\/p>\n Pandemic-era fiscal stimulus contributed to an increase in inflation of about 2.6 percentage points in the U.S., according to 2023 research<\/a> from the Federal Reserve Bank of St. Louis.<\/p>\n<\/div>\n<\/div>\n\n
Student loan forgiveness may soon be taxed again<\/a>
What the Fed\u2019s interest-rate decision could mean for your money<\/a>
How to lower capital gains on your home sale as Trump eyes ending the tax<\/a><\/p>\n\n
Rebates could \u2018put upward pressure on prices\u2019<\/h2>\n
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