The Trump administration is considering using revenue from proposed tariffs to fund tax rebates to Americans rather than reduce the federal deficit, according to information from former Commerce Secretary Wilbur Ross.
Ross said the White House is having “early talks about a tax refund/dividend check from the trillions in revenue they plan to collect from sweeping tariffs,” after dining with President Donald Trump, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and other administration officials at Mar-a-Lago last Friday.
The administration is finalizing proposals for import duties that could range between 15% and 25% on a wide range of products. Ross said the White House is considering “setting one flat rate on imports” within this range.
Former Trump administration official Peter Navarro has claimed the planned tariffs could collect “$600 billion annually,” with additional revenue coming from auto tariffs. One person familiar with the administration’s planning told the Washington Post the total revenue could exceed $6 trillion over time.
Multiple economists have expressed concerns about the broader economic impact of extensive tariffs, though they have not specifically addressed the rebate proposal. Financial markets have shown negative reactions to discussions of expanding tariffs, with major indices declining since the plans first emerged in February.
The federal debt currently stands at approximately $36 trillion, with projections showing it could exceed $52 trillion within a decade, according to figures cited in policy discussions.
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