President Donald Trump has hinted at a plan to send $2,000 checks to American families, calling them “tariff dividends.” The idea is that the money would come from taxes collected on goods brought into the country.
The goal is to let households benefit directly from trade revenue instead of leaving it all with the government.
Kevin O’Leary on Trump’s Rebate
The proposal has sparked pushback from critics who say it could come with hidden downsides. Kevin O’Leary spoke out on X, calling it a “quick band-aid” and pointed out that it won’t solve the bigger problems that the economy is facing.
Kevin went on to explain his point on X (formerly Twitter). He said, “Everyone loves the idea of a free check, especially in a tough economy. But here’s the truth, and it’s not always popular. Sending out $2000 checks funded by tariffs might feel good in the moment, but it does nothing to fix the core problem.”
He warned that giving out $2,000 checks could make inflation worse. As Kevin put it, “Inflation is the silent tax that punishes every American, especially the ones who can least afford it.”
Why is it Bad?
Tariffs work like taxes on products brought in from other countries, which can already make everyday items cost more. If that tariff money is then handed out as cash payments, it could push prices up even further by increasing spending while supplies stay the same.
Tariffs Should Build Stability and Not Fund Giveaways
O’Leary said the money from tariffs would be better spent reducing the national debt. He believes that doing so would “strengthen the foundation of the economy, not weaken it.”
Mr. Wonderful further said that real financial stability would do far more for Americans than a one-time check funded by tariffs. “That’s how you lower mortgage rates, stabilize the bond market, and protect the long-term strength of the U.S. dollar,” he explained.
He warned that short-term giveaways might be popular politically, but they don’t solve deeper problems. “Quick Band-Aids feel good. Real fiscal discipline keeps the country strong,” O’Leary added.
Effects of The Downsized Economy
Just last month Kevin offered his insights on how to navigate the current economy and make smarter financial choices. He had said, “We’re looking at a downsized America. Three years ago, even 24 months ago, you’d get a mortgage at 4.5%. You’re lucky to get one at 8% today.”
Affected Shark Tank Businesses From Trump Tariffs
For years, producing goods overseas has been the most practical way for small companies to keep costs down.
NightCapIt
NightCapIt LLC from Shark Tank Season 12 Episode 12 was also operating on the same tangent. Their signature NightCap scrunchie was made in China for a fraction of the price, allowing them to meet growing demand, especially from college campuses.
That balance was disrupted when new tariffs under Trump’s trade policy took effect. A single $6,000 order from the UK suddenly came with $1,200 in added costs. Small businesses deserve an advanced notice at the very least before new tariffs are set in stone.
Click & Carry
Kim Meckwood’s Click & Carry was built to make carrying multiple bags easier. The products were made in Fujian, China, for eight years, as it kept the costs manageable.
When tariffs started to rise, Kim tried to get ahead by selling existing inventory and stocking up. But that strategy didn’t last long. A shipment once costing her about $19,000 in duties on $150,000 worth of goods can now face tariff rates of up to 145 percent. All of this completely erased her profit margins.
The business explored the idea of moving production to the U.S. to survive, but that was not sustainable. The mold alone would cost more than twice as much as it does overseas. And the raw materials would still need to be imported along with the exorbitant labor costs.
