Confidence in Tariff Revenue and Political Considerations
Successor to Fed Board Member to Be Announced Soon
President Donald Trump has announced a plan to distribute a portion of the tariff revenues collected from countries around the world to Americans in the form of dividends.
According to Reuters on the 3rd (local time), President Trump told reporters that "there could be dividend payments or distributions," adding, "I believe dividends could be paid especially to the middle class and low-income groups."
The reason President Trump has revealed his intention to pay dividends to Americans is that he expects significant revenue from tariffs. According to the U.S. Department of the Treasury, in June, the United States collected a total of $27.2 billion (approximately 37.65 trillion won) in tariff revenue. This figure is nearly four times higher than the same period last year.
There are also projections that this year's tariff revenue could reach $150 billion (about 208 trillion won). As a result, some Republican senators in the federal Senate have introduced a bill proposing that tariff revenues be distributed to the public. The bill, submitted by Republican Senator Josh Hawley, centers on providing at least $600 (about 830,000 won) per person to Americans.
Tariff policies have consistently been criticized for negative effects such as rising import prices, increased burdens on consumers, and concerns over retaliatory export measures. President Trump's mention of "dividend payments to the middle class and low-income groups" is also interpreted as an attempt to mitigate negative public opinion about tariff policies and to frame tariffs as a benefit that returns to the people.
Additionally, President Trump said he would soon announce a successor to Adriana Kugler, the recently resigned member of the U.S. Federal Reserve Board (Fed).
Once the new member is appointed, the number of Fed board members appointed by President Trump will increase to three out of seven, including Vice Chair Michelle Bowman and board member Christopher Waller.
President Trump also stated that Steve Witkoff, the special envoy to the Middle East, may visit Russia around the 6th, just before the deadline for the Ukraine war ceasefire negotiations set for the 8th. Special Envoy Witkoff is currently visiting Israel.
President Trump said, "If Russia does not agree to a ceasefire, we will impose sanctions," adding, "They are cunning and seem quite adept at evading sanctions."
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