Key Takeaways
- The monthly U.S. budget statement for October showed that tariffs generated $31 billion in revenue for the government, continuing the steady rate of collection since President Donald Trump’s reciprocal tariffs were implemented.
- Some economists have estimated that Trump’s proposal for a $2,000 tariff rebate check in 2026 could cost around $300 billion, less than what tariffs could bring in at their current rate.
- The October budget statement also showed that the government ran a $284 billion deficit that month. Members of Congress have suggested that tariff revenues should be used to reduce the government’s debt.
Tariff revenues continue to roll in for the U.S. government, but it is likely not yet enough to cover President Donald Trump’s proposal for $2,000 stimulus checks.
The latest budget statement from the U.S. Treasury revealed that the federal government collected $31 billion in tariffs during October, the highest amount in any month since the Trump administration began implementing steep import taxes.
It’s the third month of collection since the White House laid out a series of “reciprocal” tariffs in August, which introduced or raised levies on imports from a lengthy list of nations. The government collected $30 billion in each of the prior two months.
In the September budget statement, the government reported $195 billion in tariff collections, surpassing the $77 billion collected in the prior fiscal year, which ended in September 2024.
Are Collections Enough to Pay for the Tariff ‘Dividend’ Checks?
With tariff collections now coming in at a steadier rate, Trump wants to use the funds to issue stimulus checks to low- and middle-income Americans.
Why This is Important for You
A $2,000 stimulus check could help many Americans who are struggling to pay for things as inflation remains stubbornly high. Steady collection of tariff revenue could provide a source of funding for these stimulus checks.
Economists at the Tax Foundation think tank estimated that the proposed rebate would cost $300 billion if the $2,000 checks were distributed to adults making less than $100,000 a year.
If collections continue at roughly the same rate since the introduction of the reciprocal tariffs, that would add up to around $360 billion a year, above the potential costs of Trump’s rebate check proposal.
The tariff revenue would be enough to cover the proposal by June, if the Tax Foundation’s calculations are correct and revenue remains steady. Trump and other officials said that the checks wouldn’t be issued until sometime in 2026.
Latest Data Shows Budget Deficit Persists
Even if the tariffs generate enough revenue to issue the checks, the White House will still likely need to persuade Congress to approve the payments. The proposal is already facing pushback, including from members of the president’s party.
Many legislators 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. It comes after the federal government ran a $1.78 trillion deficit in the 2025 fiscal year.
Earlier this week, Sen. Ron Johnson, a Wisconsin Republican, said he wasn’t likely to support the idea, joining other legislators in arguing that tariff revenues should be used to reduce the deficit first. However, others, such as Alabama Republican Sen. Katie Britt, have suggested that Congress should examine the proposal.
Meanwhile, Trump remains committed to the idea, with Commerce Secretary Howard Lutnick stating earlier this week that the White House legislative team is exploring ways to move forward with the checks.
Trump has also said that he expects collections from the tariffs to increase in the coming months. That’s because many importers rushed to stockpile goods before tariffs took effect. As those stockpiles 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 payable to the USA will SKYROCKET, over and above the already historic levels of dollars received.”
