Howard Lutnick says next two weeks will be “for the record books” with tariff deals

President Trump on Friday said he’s considering issuing rebate checks for Americans based on the billions in new tariff revenue collected by his administration.

“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,” Mr. Trump said in comments to reporters before he left for a four-day visit to Scotland.

Federal debt, which currently stands at more than $36 trillion, is projected to rise due to the new tax cuts and spending bill signed into law by Mr. Trump on July 4, according to forecasts from economists and public policy think tanks. The nation’s deficit could rise by $3.4 trillion over the next 10 years because of the impact of the One Big Beautiful Bill Act, the Bipartisan Policy Center said, citing estimates from the nonpartisan Congressional Budget Office and the Joint Committee on Taxation.

Mr. Trump added that the rebate could be “for people of a certain income level,” although he didn’t specify the threshold that he’s considering.

The federal government has collected about $100 billion in tariff revenue since the Trump administration instituted its higher import duties earlier this year, which could increase to $300 billion per year, Treasury Secretary Scott Bessent told Fox Business’ “Mornings with Maria” on Tuesday.

Tariffs vary from country to country, but they’re paid by U.S. importers, such as Walmart, or manufacturers that import materials and components from other countries, like Ford Motor. So far, some companies have been swallowing the higher costs rather than passing them on to consumers, although the latest inflation report signaled that higher tariff rates may be edging into consumer prices.

Rebate checks have been floated by Mr. Trump previously, with the president saying in February he was considering using 20% of the savings from Elon Musk’s cost-cutting task force, the Department of Government Efficiency, or DOGE, to provide direct payments to taxpayers. During the pandemic, taxpayers received three rebate checks — two under the first Trump administration, and the third under the Biden administration — aimed at offsetting the economic impact of the crisis.

Typically, such rebates are issued through the tax code, which would require Congress to pass new tax legislation authorizing the Treasury Department to issue checks.

Lawmakers earlier this month passed a massive tax and spending bill that was signed into law by Mr. Trump on July 4, which authorizes some new tax breaks, but doesn’t include a rebate based on tariffs.

Some of the bill’s new tax cuts are limited to low- and middle-income taxpayers. For instance, its new $6,000 deduction for senior citizens phases out for single taxpayers with incomes over $75,000 and married filers with earnings over $150,000.