Trump calls for a "60,000 tariff red envelope for everyone," is he handing out money to save public opinion after a disastrous local election?

Earlier, Trump proposed a $2000 tariff rebate plan, which observers analyze might be an attempt to divert attention from recent local election losses. Currently, there are no clear details regarding the specific thresholds or schedule. (Background: The U.S. government shutdown lasted 38 days, setting a record. Senate Republican leader: Positive signals in bipartisan negotiations.) (Additional context: Goldman Sachs predicts the government shutdown will end within two weeks, providing more basis for a December Fed rate cut?) U.S. President Trump announced a few hours ago that tariff revenues will be redistributed to citizens, with each person receiving at least $2,000, emphasizing that it could “help combat inflation and also reduce national debt.” However, U.S. Treasury Secretary Mnuchin, who generally aligns with Trump’s policies, did not immediately endorse the president’s idea this time, and it remains uncertain whether cash payments will actually be distributed. Is the $2,000 gift aimed at buying votes? The underlying reason behind Trump’s sudden proposal for universal cash payments may be related to the Republican Party’s recent losses in local elections, with polls showing voters are quite dissatisfied with 3% inflation and rising living costs. Therefore, Trump is using tariffs as a talking point, claiming that future “trillions of dollars” in revenue could flow back to the public. However, reports indicate that high-income groups will be excluded, and there are no clear thresholds or schedules at this time. Recently, special elections in Virginia, New Jersey, New York City, and California saw Democrats sweeping nearly all key seats, from governors and mayors to court positions and district redrawings. The administration’s disagreements and alternative plans Interestingly, Treasury Secretary Mnuchin stated in an interview that he has not discussed details with Trump and mentioned that “direct cash” might instead be replaced with tax cuts, such as removing taxes on tips and overtime pay. Mnuchin emphasized that the primary goal of tariffs is to “rebalance trade” and attract manufacturing back to the U.S. If factories do move back, tariff revenue could actually decline, and the tax base would rely on increased employment and consumption to fill the gap. Judicial review and economic risks coexist Just days before Trump’s cash proposal, the U.S. Supreme Court began hearings on the legality of tariffs. Several justices questioned the scope of executive authority to impose tariffs. If the ruling is unfavorable, the U.S. government may have to refund over $100 billion, not to mention Trump’s plan to use that money for cash payments. To directly distribute money, Congress would need to review appropriations. Currently, the two parties are highly divided, and past relief bills have taken long negotiations, so this time is unlikely to be different. More importantly, although U.S. tariff revenue for the first three quarters of 2025 has already reached about $195 billion, it remains a drop in the bucket compared to the $38 trillion national debt. Related reports U.S. government shutdown continues: Senate rejects the 12th funding bill, worsening healthcare reform and military salary crises Fed warns: government shutdown makes Fed decision-making difficult, year-end rate cuts may be canceled U.S. government shutdown “cryptocurrency regulation chaos”: Litecoin ETF stalls, all 90 applications rejected (Trump’s “60,000 tariff red envelope for all,” money-spreading after local election defeat to boost public support?) This article was originally published on BlockTempo, the most influential blockchain news media.