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Treasury Secretary Scott Bessent said Sunday that President Donald Trump’s plan to issue $2,000 tariff rebate checks to most Americans can only move forward with Congressional approval.
During an interview on Fox News’ Sunday Morning Futures, Bessent stated, “We will see. We need legislation for that,” while noting that such payments “could go out.”
Trump has promoted the idea repeatedly, most recently in a Truth Social post claiming that tariffs would fund at least $2,000 per eligible American, excluding high-income earners. He first teased the concept back in July.
Bessent emphasized that these payments would target working families and include a clear income cap.
Supreme Court’s Review of Tariffs Could Complicate Plans
Justices Question Legal Basis for Tariffs
The Supreme Court is currently evaluating the Trump administration’s use of an emergency law to justify a substantial share of existing tariffs.
During recent hearings, several conservative justices expressed skepticism, scrutinizing the legal reasoning behind the tariffs.
The tariffs have long faced criticism for fueling inflation by increasing consumer prices. However, Bessent and members of Trump’s economic team firmly deny that tariffs act as a tax on American shoppers.
Bessent raised concerns about the potential fallout if the Court rules against them:
“If it does, what’s their plan for refunds? Are they just going to hand importers huge windfalls?”
He added that he doubts the Court wants to deal with such a complex scenario.
US–China Trade Agreement Still Pending
Rare-Earth Minerals Agreement Expected Soon
Despite ongoing trade tensions, the U.S. and China have not finalized a rare-earth minerals trade agreement, vital for both consumer electronics and military equipment.
A framework agreement introduced in October temporarily prevented additional 100% tariffs on Chinese goods—contingent on China lifting its restrictions on critical rare-earth exports.
Bessent said the final agreement will “hopefully” be completed by Thanksgiving, restoring rare-earth supply chains to pre-April 4 levels, before the reciprocal tariffs escalated.
Economic Impact of Government Shutdown
The longest government shutdown in U.S. history ended Wednesday after a tight congressional vote on a spending bill.
Bessent acknowledged the setback, stating, “Of course the government shutdown set us back.”
While he did not predict whether Q4 GDP will be weak, he forecasted that inflation will ease in early 2026, and real income will rise sharply.
“When those two lines cross, Americans are going to feel it,” he remarked.
Rising Grocery Costs and Tariff Adjustments
Agricultural Imports to Receive Tariff Relief
On Friday, the Trump administration announced that many agricultural imports will be exempt from reciprocal tariffs, easing earlier proposed rates of up to 50% on goods from Brazil and other countries.
This move is expected to help counter increasing food prices.
Grocery prices were 2.7% higher in September compared with the same month last year.
Specific increases include:
- Coffee: up nearly 21% year-over-year
- Bananas: up 6.6% compared to last year
Kevin Hassett, Director of the National Economic Council, noted on ABC’s This Week that prices were not rising solely because of tariffs. He added that prices should decrease as U.S. supply increases.
Meanwhile, the consumer sentiment index dropped to 50.3 in November from 53.6 in October, according to the University of Michigan—raising concerns ahead of the holiday season.
Conclusion
The future of $2,000 tariff rebate checks remains uncertain as the proposal requires Congressional action and is further complicated by the Supreme Court’s review of Trump’s tariff authority.
While trade negotiations with China continue and the administration works to address rising grocery prices, economic indicators such as consumer sentiment and inflation trends will play a major role in shaping the months ahead.
FAQs
1. What did Treasury Secretary Bessent say about the $2,000 rebate checks?
He stated the checks require congressional approval and could be issued only if legislation is passed.
2. Why is the Supreme Court’s ruling important for tariffs?
A decision against the administration could invalidate major tariffs, raising questions about potential refunds and financial impacts.
3. When could the U.S.–China rare-earth agreement be completed?
Bessent said a deal will hopefully be finalized by Thanksgiving, restoring normal trade flows.