President Trump stated on Friday that his administration is considering issuing rebates to taxpayers due to the significant revenue the U.S. is collecting from tariffs and trade agreements.
“We have so much money coming in from tariffs that a little rebate for people of a certain income level might be very nice,” Trump said. “The big thing we want to do is pay down debt. But we’re thinking about a rebate.”
Speaking to reporters about his upcoming August 1 trade deadline, Trump reiterated plans to impose steep tariffs on countries that fail to reach trade deals with the U.S. He has already announced a series of agreements following letters sent to foreign leaders warning them of the impending tariffs.
On Tuesday, Trump revealed that Japan, Indonesia, and the Philippines have agreed to open their markets to American trade. Indonesia and the Philippines will remove tariffs on U.S. goods, while Japan has committed to invest $550 billion in the United States. “Which will receive 90% of the Profits,” Trump noted. Japan will also continue to pay 15% tariffs on imports into the U.S.
JUST IN: Trump Announces “Massive Deal” with Japan with 15% Reciprocal Tariffs – $550 Billion to be Invested with U.S. Receiving 90% of Profits
Earlier this month, Treasury Secretary Scott Bessent told the cabinet he expects tariff revenues to exceed “well over $300 billion” by the end of 2025. Recent budget data shows that tariff revenues as a percentage of total federal revenue have more than doubled. In contrast to a $71 billion deficit under Biden in June 2024, tariffs are now generating a surplus. For the first time in history, U.S. customs duty collections for fiscal year 2025 have surpassed $100 billion—with several months remaining.
With just one week left before the August 1 deadline, Trump suggested that Americans “of a certain income level” might see a rebate. In addition to the surge in tariff revenue, Trump has secured over $5 trillion in foreign and private sector investments in manufacturing, AI, and energy.
Trump has also indicated that his proposed External Revenue Service would prioritize taxpayers earning under $200,000 annually, hinting that taxes could be “completely eliminated” for that bracket. This new agency, unveiled on January 14, 2025, will be responsible for collecting “Tariffs, Duties, and all Revenue that come from Foreign sources,” according to Trump.
“Our country was a dead country. Was a dead country one year ago. Now we have the hottest country anywhere in the world. And don’t you feel it?” he said to reporters at the White House.
WATCH:
Reporter: When you send out those letters, do you believe that will bring some certainty to the financial markets?
Trump: When those letters go out—they’re a page and a half—that means they have a deal, it’s done, they pay that tariff, and that is a contract, essentially. And they can come into the country, they’re going to pay a tariff. I’m going to keep it minimal. I’m not looking to hurt countries. I could do that too, but I’m not looking to do that. But when that letter goes out, that’s a deal. And we’ll be sending maybe close to 200 of those letters out. Don’t forget, we have a lot of countries. So we’re going to be sending out almost 200 of those letters. But once those letters go out, we have a deal. Now, we sent some to—Japan, we sent one to EU—and they came back and negotiated a deal. I think EU has got a pretty good chance of making a deal.
Our country was a dead country. Was a dead country one year ago. Now we have the hottest country anywhere in the world. And don’t you feel it?
Reporter: With all of that revenue coming in—tens and tens of billions of dollars—do you think there is the possibility of a rebate to the American public?
Trump: We’re thinking about that actually. We have so much money coming in, we’re thinking about a little rebate. But the big thing we want to do is pay down debt. But we’re thinking about a rebate. That’s a very good question! You just made a lot of news. We’re thinking about a rebate because we have so much money coming in from tariffs that a little rebate for people of a certain income level might be very nice.
