American families could see up to $2,400 in rebates from President Donald Trump’s tariffs under a new proposal from Republican Senator Josh Hawley.
On Monday, Republican Senator Josh Hawley from Missouri introduced a plan to offer tariff rebate checks to families, mirroring the stimulus checks distributed during the COVID-19 pandemic.
The amount received varies by family but typically includes at least $600 per adult and child, totaling $2,400 for a family of four.
Trump has expressed his support for the idea.
Last week, he mentioned to reporters, “We’re considering issuing a rebate. However, our main focus is on reducing national debt. Yet, issuing a rebate is under consideration.”
Hawley moved forward with his American Worker Rebate Act after Trump’s comments.
Hawley stated in a press release, “Following President Trump’s lead, my proposal aims to let diligent Americans gain from the wealth generated by Trump’s tariffs that are returning to our nation.”
The proposal comes as the federal government’s coffers have risen with the president’s tariff deals.
President Donald Trump has indicated his support of using tariff gains as rebates
The Treasury Department announced that through July, tariffs brought in about $28 billion.
The revenue from tariffs this year has reached roughly $150 billion, which is about $1 billion more than the total tariff income collected in June.
Tariffs are a tax imposed by foreign nations, paid by domestic companies that import goods or services.
So far most companies are absorbing the increased costs instead of passing them on to the consumer.
However, prices could still rise.
Republican Senator Josh Hawley of Missouri proposed the rebate program
Hawley’s initiative, pending Congressional approval, is structured as a refundable tax credit. If enacted, checks would be distributed within the year.
And there is flexibility in the proposal depending on a person’s income levels.
The proposed legislation suggests a 5% reduction in rebates for households filing jointly with an adjusted gross income above $150,000, heads of household earning over $112,500, and individual taxpayers with incomes exceeding $75,000.
Meanwhile, President Trump said that he will not extend Friday’s deadline for his ‘reciprocal’ tariffs on dozens of countries to restart.
‘The August first deadline is the August first deadline,’ he wrote on Truth Social Wednesday morning. ‘It stands strong and will not be extended.’
He followed that up with a post announcing his administration will impose a 25% tariff on goods from India, plus a ‘penalty’ for buying military gear and energy from Russia.
Trump has previously said he would not extend his deadline on reciprocal tariffs and then going on to extend it.
In early April, Trump announced a 10% blanket tariff rate, along with higher individualized rates of up to 50% for dozens of countries.
In the ensuing stock market panic, he paused them for 90 days, which would have seen them restart on July 9.
Then he initiated another pause until August 1.
Trump has been signing deals with countries in the runup to Friday’s deadline.
In Scotland this past weekend he came to a trade agreement with the European Union. It gives the EU a 15% tariff across the board.
The president called it ‘the biggest deal ever made.’
Without the deal, Trump had threatened the EU’s 27 member countries with a 30% tariff rate.
