The Supreme Court\u00a0struck down a centerpiece of President Donald Trump\u2019s tariff agenda<\/a>\u00a0on Friday, also dealing a blow to the possibility of sending\u00a0so-called\u00a0tariff dividend checks<\/a>\u00a0to families, experts say.<\/p>\n \u201cTariff dividends were a long shot from the beginning,\u201d said certified financial planner Stephen Kates, a financial analyst at Bankrate. \u201cGiven the White House\u2019s lack of authority to unilaterally issue stimulus checks to Americans, the idea was largely aspirational,\u201d he said. <\/p>\n Any such broad-based benefit program would require legislation passed by Congress. Following a major Supreme Court defeat and with an ongoing partisan battle in Washington, congressional approval would be especially difficult, he said.<\/p>\n \u201cEven if tariffs were to return to prior levels and generate revenue for a broad stimulus program, there does not appear to be sufficient political support to move such a measure through Congress,\u201d Kates said. \u201cThe odds of this policy moving forward is now effectively zero.\u201d <\/p>\n<\/div>\n The Supreme Court\u00a0decided in a 6-3 tariff ruling<\/a>\u00a0that the president wrongfully invoked the International Emergency Economic Powers Act (IEEPA) to implement a large portion of his trade agenda.<\/p>\n Shortly after the high court\u2019s ruling, Trump said he\u00a0would sign an executive order<\/a>\u00a0imposing a new 10% \u201cglobal tariff\u201d using a different legal authority<\/a>, and then increased the rate to 15%. <\/p>\n In a\u00a0Truth Social post<\/a>, Trump said the new tariffs will be \u201ceffective immediately,\u201d\u00a0but it was unclear if any official documents were signed detailing the timing<\/a>.\u00a0 <\/p>\n \u201cEven if the tariffs challenged by the Supreme Court\u2019s decision are replaced by other trade taxes on Americans, the widening federal deficit should make everyone skeptical that these checks will ever be in the mail,\u201d said Brett House, economics professor at Columbia Business School.\u00a0<\/p>\n<\/div>\n On Friday, Treasury Secretary Scott Bessent said during an appearance at the Economic Club of Dallas that tariff revenue \u201cwill be little changed\u201d \u2014 despite the Supreme Court ruling \u2014 under Section 122\u00a0of the Trade Act of 1974<\/a>. That statute\u00a0grants the president temporary authority to reimpose his tariff\u00a0agenda, and potentially paves the way for a one-time $2,000-per-person tariff rebate for some U.S. households. <\/p>\n On Monday, a White House official told CNBC in an email that \u201cas Sec. Bessent has made clear, tariff revenue is expected to remain robust with the use Section 122 tariffs, and the Administration is committed to putting that revenue to good use for the American people.\u201d<\/p>\n<\/div>\n The president first floated the idea of making direct distributions to Americans<\/a>\u00a0in July. Sen. Josh Hawley, R-Mo., then\u00a0introduced<\/a>\u00a0the\u00a0American Worker Rebate Act of 2025<\/a>, which pitched a stimulus check funded with tariff revenue. The Senate referred that bill to the Committee on Finance, where it remains.<\/p>\n Later in the year, Trump said that a rebate check with the money his tariffs had generated would be forthcoming. <\/p>\n \u201cA dividend of at least $2000 a person (not including high income people!) will be paid to everyone,\u201d he wrote in a\u00a0post<\/a> on Truth Social in November. <\/p>\n<\/div>\n At the end of 2025, National Economic Council Director Kevin Hassett also said that \u201cthe president will bring forth a proposal to Congress to make that happen.\u201d<\/p>\n When asked about tariff rebates in January, Trump said the checks would come \u201ctoward the end of the year.\u201d <\/p>\n<\/div>\n The Trump administration may still have to refund the tariffs already paid to the entities that paid them.<\/p>\n Tariffs are a tax on imports from foreign nations, paid by U.S. entities that import the good or service. Companies often bear some of the cost<\/a>\u00a0and pass on the rest to consumers through\u00a0higher prices<\/a>. <\/p>\n The Supreme Court did not rule on\u00a0potential tariff refunds<\/a>, but if the U.S. has to pay businesses back, that would erode the surplus tariff revenue, which would have funded dividend checks. For now, potential tariff refunds are up in the air. Even who is eligible<\/a> and how they would be able to apply is unclear, experts say. <\/p>\n \u201cThe court did not rule on refunds, but either way it would be hard to see that tariffs get handed out to those previously not taxed by tariffs rather than those previously taxed,\u201d said Tomas Philipson, a professor of public policy studies at the University of Chicago and former acting chair of the White House Council of Economic Advisers.\u00a0<\/p>\n Subscribe to CNBC on YouTube.<\/strong><\/em><\/a><\/p>\n<\/div>\n<\/div>\n\nRead more CNBC personal finance coverage<\/h2>\n
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![\"President](\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/108268047-17716134951771613492-44131600035-1080pnbcnews.jpg?v=1771613494&w=750&h=422&vtcrop=y\")
\u2018A dividend of at least $2,000\u2019<\/h2>\n
The status of tariff refunds<\/h2>\n
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