Costco sues the Trump administration for tariff refund
The popular wholesale store Costco sued the Trump administration over tariffs. They are seeking a refund of paid duties.
- President Trump says he will send $2,000 stimulus checks to low- and middle-income Americans using tariff revenue.
- The plan faces significant hurdles, including the need for congressional approval and doubts about sufficient funding.
- A pending Supreme Court case, Trump v. V.O.S. Selections, Inc., could eliminate the tariff revenue needed for the checks to happen.
- Despite obstacles, administration officials remain confident the checks will be sent out, possibly in mid-to-late 2026.
Whether you’re cautiously optimistic or an outright nonbeliever, confusion surrounding President Donald Trump’s $2,000 tariff rebates continues to spread. His administration’s stance, however, hasn’t budged.
Trump himself has recently committed to the idea of stimulus checks from tariff revenue several times, from Truth Social posts about giving all but “high income people” a $2,000 dividend to directly telling reporters that checks for low- and middle-income Americans would be sent out mid-to-late 2026.
As many have pointed out, a handful of roadblocks stand before the president’s promise. For one, a stimulus check initiative like this would need congressional approval – which is already reported to be far from a sure thing, according to Politico.
Many Republican lawmakers, includingSen. Bernie Moreno, R-Ohio, have indicated they’d rather see the tariff money spent on chipping away at the country’s $38 trillion in debt, and that tariff rebates would “never pass” Congress, according to Business Insider.
There are also mathematical doubts as to whether tariffs have generated enough money to send $2,000 to every low- to middle-income American. Independent tax policy research institute The Tax Foundation estimates Trump’s tariffs will bring in $158.4 billion in total revenue this year, plus another $207.5 billion in 2026. The think tank predicts Trump’s stimulus check proposal would cost anywhere from $279.8 billion to $606.8 billion.
Perhaps no obstacle is bigger than the outcome of Trump v. V.O.S. Selections, Inc. – the U.S. Supreme Court case challenging the legality of Trump’s tariffs. If the justices vote against the president, there wouldn’t be tariff revenue to fund the stimulus checks, rendering them moot.
Nevertheless, the Trump administration seems adamant that one way or another, rebate checks will hit many Americans’ pockets. Here’s what we know so far.
Are the $2,000 tariff stimulus checks legitimate?
If you ask the commerce secretary, they are.
In a Nov. 24 interview with FOX Business, U.S. Secretary of Commerce Howard Lutnick reaffirmed the Trump administration’s stance on giving $2,000 to all low- and middle-income Americans from tariff revenue.
“One of the ways to prove to the American people how great tariffs are is to have them share in a part of one year’s income from these tariffs,” Lutnick said, “and that’s $2,000 a head for people who need the money.”
Lutnick told FOX that he’s confident the Trump administration will win its case with the Supreme Court, adding there are “all sorts of policies and tools” the president could use even if the nation’s high court rules against him.
Lutnick’s remarks came not long after Treasury Secretary Scott Bessent commented on the rebates, suggesting an income limit of $100,000 to be eligible.
How many tariff stimulus checks have been mailed?
As of Dec. 2, the government has not sent any stimulus checks funded by tariff revenue to Americans.
Will tariff rebates be sent out in 2025?
If the stimulus checks do happen, it’s extremely doubtful they’ll be sent this year.
Though there’s no official timeline, Trump told reporters in November that the checks would be sent out mid-to-late 2026. Lutnick affirmed on his FOX appearance that payments from the president would come next year.
Reporter Emma Wozniak can be reached at ewozniak@dispatch.com or @emma_wozniak_ on X, formerly known as Twitter.
