According to Trump, the strategy behind the proposal is simple: impose higher tariffs on imported goods, collect the resulting revenue, and redistribute a portion of that money back to the public. He argued that tariffs strengthen the domestic economy by encouraging companies to invest and manufacture within the United States. In his statement, Trump insisted that opposition to tariffs is misguided, claiming the country is now “the richest, most respected” in the world, with low inflation and record-high stock market levels. He portrayed tariffs not as a burden on consumers, but as a tool to drive growth and reinforce economic independence.

However, economists and policy analysts caution that the numbers behind the proposal raise significant concerns. Data shows that the United States collected approximately $195 billion in customs duties through September 2025, a figure well below the estimated $300 to $500 billion that would likely be required to fund a nationwide dividend of the size Trump described. Experts note that dramatically increasing tariff revenue to close that gap could require much higher import taxes, which historically have been passed on to consumers through higher prices, potentially offsetting any benefit from a dividend.

Beyond the funding gap, practical and legal questions remain unanswered. There is currently no clear framework outlining how such a dividend would be distributed or administered. Possible mechanisms could include direct payments, tax rebates, or credits tied to healthcare or other services, but none have been formally proposed. Legal experts also point out that implementing a nationwide dividend tied to tariff revenue would require congressional approval and extensive regulatory planning. As discussion continues, the proposal remains an idea rather than a detailed policy, leaving many questions about feasibility, impact, and execution still unresolved.