President Donald Trump’s announcement to distribute 2,000 USD to every American from tariff revenues has sparked a rally in the U.S. capital markets, with cryptocurrencies surging across the board.
On November 9, Trump declared he could use tariff income to provide at least 2,000 USD to all Americans.
In a post on his Truth Social platform, Trump stated that those who oppose tariffs are fools. It has minimal inflation and the stock prices are hitting record highs daily. They are the wealthiest and most respected country in the world. A minimum dividend of 2,000 USD per person will be distributed, excluding high-income earners.
However, Trump did not specify the criteria for high-income earners.
This move appears to be in response to the Supreme Court’s indication that Trump’s tariff strategy might infringe on Congressional authority. Trump’s argument seems to be: what’s wrong with returning tariff revenue to the American people?
If these dividends are actually paid out, they’re expected to stimulate consumer spending in the U.S., which accounts for 70% of the overall economy.
This isn’t the first time Trump has floated such an idea.
Earlier this year, he suggested that the government could distribute funds accumulated by Elon Musk’s Department of Government Efficiency (DOGE) to the public. DOGE had reportedly generated significant savings through budget cuts and workforce reductions in federal agencies.
In the wake of this news, cryptocurrencies have seen a widespread rally.
As of 6:00 a.m. on Monday, global cryptocurrency tracker CoinMarketCap reported that Bitcoin had risen 2.52% in the last 24 hours, reaching 104,652 USD.
Ethereum, the second-largest cryptocurrency by market cap, surged 5.64% to trade at 3,583 USD.
Ripple, ranked fourth by market cap, increased by 2.96% to 2.34 USD, while Binance Coin, ranked fifth, rose 0.29% to 1,002 USD. Solana, ranked sixth, skyrocketed 5.01% to 1,265 USD.
Index futures are set to begin trading at 8:00 a.m. (South Korean time), with a strong possibility of rallying on expectations of increased consumer spending.