The White House is weighing a one-time $2,000 “tariff rebate” funded by customs duties, with Treasury Secretary Scott Bessent saying the working target is families earning under about $100,000, though nothing is finalized and legal mechanisms are still being vetted. Officials also preview “substantial” steps to lower prices by cutting tariffs on goods America largely doesn’t produce—like coffee and bananas—while keeping the broader America-First tariff strategy in place.
At the same time, the administration highlights using much of the new tariff revenue to pay down federal debt, aligning checks and debt reduction with a “dividend from fair trade” message. Separate from any rebate, tax relief is already law: the July 4, 2025 One Big Beautiful Bill Act delivers deductions for reported tips and for overtime pay starting with 2025 income (claimed on 2025 returns filed in 2026) and currently runs through 2028. These moves aim to boost take-home pay and blunt living-cost pressures without abandoning the tariff posture used to counter foreign trade abuses.
Key details on any rebates—eligibility, per-person vs. per-return amounts, and the split between checks and debt—remain open. Court challenges to tariff authorities also pose a real constraint on how much revenue could be available.
