Tariff money continues to flow as Trump promises to check rebate

Tariff revenue continues to flow to the US government, but likely not yet enough to cover President Donald Trump’s proposal for $2,000 stimulus checks.

The US Treasury Department’s latest budget statement revealed that the federal government collected $31 billion in tariffs during October, the highest amount in any month since the Trump administration began implementing heavy import taxes.

It’s the third month since the White House put in place a series of “reciprocal” tariffs in August, which imposed or increased duties on imports from a long list of countries. The government raised $30 billion in each of the previous two months.

In the September budget statement, the government announced the collection of customs duties worth $195 billion, exceeding the $77 billion collected in the previous fiscal year, which ended in September 2024.

Are the collections sufficient to pay the tariff “dividend” check fees?

With tariffs now being collected at a more stable rate, Trump wants to use the money to issue stimulus checks to low- and middle-income Americans.

Economists at the Tax Foundation estimate that the proposed cut would cost $300 billion if the $2,000 checks were distributed to adults who make less than $100,000 a year.

If collections continue at roughly the same rate since the introduction of reciprocal tariffs, that would add up to about $360 billion annually, more than the potential costs of Trump’s rebate check proposal.

Tariff revenues will be enough to cover the proposal by June, if the Tax Foundation’s calculations are correct and revenues remain steady. Trump and other officials have said the checks will not be issued until sometime in 2026.

The latest data shows persistent budget deficits

Even if the tariffs generate enough revenue to issue the checks, the White House would likely still need to convince Congress to approve the payments. The proposal is already facing opposition, including from members of the president’s party.

Many lawmakers are concerned about the debt the government continues to accumulate. The October budget report showed that the government spent $284 billion more than it collected that month. This comes after the federal government faced a $1.78 trillion deficit in fiscal year 2025.

Earlier this week, Sen. Ron Johnson, a Republican from Wisconsin, said he was unlikely to support the idea, joining other lawmakers in arguing that tariff revenue should be used to reduce the deficit first. However, others, such as Republican Alabama Sen. Katie Britt, have suggested that Congress consider the proposal.

Meanwhile, Trump remains committed to the idea, with Commerce Secretary Howard Lutnick saying earlier this week that the White House legislative team is exploring ways to move forward with inspections.

Trump also said he expects tariff collections to increase in the coming months. This is because many importers rushed to stock up on goods before the tariffs took effect. As those stocks begin to run out, Trump said he expects tariff revenues to jump.

“The full benefit of the tariffs has not yet been calculated,” Trump wrote on Truth Social earlier this week. “Soon tariffs will be paid on everything they apply to, without avoidance, and the amounts owed to the United States will be SKYROCKET, in addition to the already historic levels of dollars received.”