Highlights
The crypto market rallied sharply after President Donald Trump announced a massive $2,000 “tariffs dividend” for Americans. The measure, expected to total more than $400 billion, will distribute direct payments funded by U.S. tariff revenues.
The announcement generated an immediate reaction from digital assets. The Bitcoin price rose to more than $103,000 and Ethereum was up by over 3%. Also Solana and XRP recorded decent gains. They were up by 3.1% and 2.3% respectively.
The intended move suggests the start of a new liquidity wave similar to previous stimulus cycles. The U.S. president made the declaration in a Truth Social post, saying the U.S. economy was “the richest and most respected in the world.”
Trump said the new dividend was possible because of trillions collected from tariffs and record investments flowing into American manufacturing. Trump added that the payments will exclude high-income earners but cover most U.S. adults.
“People that are against tariffs are fools,” Trump wrote. “We are taking in trillions of dollars and will soon begin paying down our enormous debt, $37 trillion.” He emphasized that 401(k) balances and the stock market have reached record highs, arguing that tariffs strengthened the economy rather than hurting it.
The Trump “tariffs dividend” acts like a targeted stimulus. The Kobeissi Letter estimated that more than 85% of adults will qualify, sending over $400 billion into circulation. “This is effectively another round of stimulus checks,” the letter said, warning that it could also fuel short-term spending and speculation.
The policy is a boost to liquidity and risk appetite. Markets responded instantly as Dogecoin and Cardano gained more than 1.8% in the same period. Earlier, Bitcoin also jumped as Supreme Court expressed doubts the legality of the Trump tariffs.
However, investor Anthony Pompliano said the fears that the tariffs would trigger inflation were exaggerated. “If Trump really gives $2,000 to citizens from the tariffs, history will probably look at the April 2025 panic as one of the dumbest mainstream takes,” he wrote.
Pompliano added that the policy could succeed without reigniting price pressures. The dividend rollout from revenues from the Trump tariffs could influence sentiment ahead of the Federal Reserve’s December meeting. The extra consumer cash could extend the current crypto uptrend if demand remains high.
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