Trump's Tariff Gamble: National Security vs. Economic Relief

President Donald Trump has proposed a $2,000 dividend to lower- and middle-income Americans using tariff revenues, while addressing national debt concerns. Amid legal challenges to his tariff authority, economic adviser Kevin Hassett highlights increased tax revenues. Trump's popularity wanes as inflation and economic issues sway voters toward Democrats.

U.S. President Donald Trump has announced plans for a $2,000 payment to lower- and middle-income Americans, financed through tariff dividends. This move coincides with efforts to reduce the national debt, even as the legality of Trump's sweeping tariffs faces scrutiny from the Supreme Court.

Economic Adviser Kevin Hassett revealed that increased tax revenues now enable the administration to offer these payments, previously intended solely for deficit reduction. Meanwhile, Trump's approval ratings have dipped amid ongoing inflation and economic concerns, with voters in key states turning to Democrats.

Trump has dismissed media claims about potential tariff repayments if the Supreme Court deems his actions illegal, insisting the outcome would damage both the economy and national security. Despite these challenges, Trump cites a decline in inflation under his administration, though consumer prices continue to rise.

(With inputs from agencies.)