President Donald Trump is floating a bold new idea that could put money directly into Americans’ pockets—rebates funded by the flood of cash pouring in from his aggressive tariff policy. On Friday, while speaking with reporters before heading to Scotland, Trump said his administration is actively considering rebates for citizens below certain income levels, citing an unprecedented surge in customs duties collected.
“We’re thinking about that actually,” Trump said when asked about the possibility. “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.” Still, he acknowledged that directing a portion of that revenue back to working Americans “might be very nice.”
Tariff Boom Surprises D.C.
This idea isn’t coming out of thin air. In June, the U.S. posted a $27 billion monthly budget surplus—something economists hadn’t predicted and the kind of figure usually only seen during peak tax filing months. According to the Treasury Department, this unexpected windfall was driven largely by a 301% increase in tariff collections compared to the same month last year.
June alone brought in $27 billion from customs duties. That’s up from $23 billion in May and four times the $6.7 billion collected in June 2024. For the fiscal year so far, tariff revenue has already hit $113 billion, marking an 86% increase over the same period last year. According to Treasury Secretary Scott Bessent, total 2025 revenue from tariffs could reach $300 billion.
The Rebate Question
The rebate concept has sparked excitement—and questions. Would the rebates be direct checks? Would they phase out at certain income levels? And, perhaps most importantly, would this shift the broader debate about who really pays for tariffs in the first place?
Trump has long argued that foreign countries “pay the tariffs,” despite critics saying those costs are passed on to U.S. consumers. A rebate could help offset any such costs—while also serving as a political message that his tough trade policies are not only boosting revenue, but directly benefiting the American people.
A Strategy with Teeth
The former president’s tariff blitz has already triggered a cascade of trade negotiations. In recent weeks, the U.S. has signed deals or frameworks with countries including the UK, Japan, Vietnam, India, and the Philippines. Trump has even begun notifying nations of the exact duties they’ll face if they want to continue exporting to America, with implementation set to begin August 1.
The goal? Force foreign governments to drop barriers on U.S. exports and open their markets—on America’s terms.
Economic Leverage or Political Timing?
Rebates tied to tariff revenue could be a powerful political tool. Not only would they underscore the success of Trump’s “America First” economic doctrine, but they’d also serve as a counterweight to the Biden-era spending programs many conservatives decried.
And with the 2026 midterms already looming, this proposal could be a sign that Trump plans to repackage economic nationalism in a way that feels personal—putting cash in voters’ hands, not just on federal balance sheets.
If this rebate idea picks up steam, it could reframe the tariff debate entirely—not just as a tool of pressure abroad, but as a populist reward system at home.