Tariff Rebate Checks Proposal Faces Legal Hurdles
Congressional Approval Is Required
Treasury Secretary Scott Bessent appeared Sunday. He discussed the $2,000 tariff rebate checks. President Donald Trump proposed these payments. Bessent confirmed Congressional approval is mandatory. “We need legislation for that,” Bessent stated clearly. If approved, the checks “could go out.” These payments target “working families” specifically. They will also be subject to an income limit. The Tariff Rebate Checks Proposal is still highly conditional.
Supreme Court Threatens Tariff Revenue
The payments face a significant legal obstacle. The Supreme Court is reviewing Trump’s tariffs. The court is questioning the use of an emergency law. Justices appeared deeply concerned with the reliance on this law. Striking down the tariffs could cut the funding source. Bessent argued against the court wading in. He questioned their plan for refunding duties. He noted importers could receive large windfalls.
Trade Deal Progress with China
Bessent provided an update on trade negotiations. A crucial trade deal with China is pending. It concerns rare-earth minerals especially. These minerals are vital for electronics and military equipment. Bessent expressed hope the deal will be finalized. He expects the agreement “hopefully” by Thanksgiving. A framework agreement was announced previously. This averted new 100% tariffs on Chinese goods. The deal requires Beijing to end specific export controls.
Shutdown and Inflation Impact
The recent government shutdown affected the economy. Bessent conceded the shutdown “set us back.” He did not forecast a weak Q4 GDP. He predicted strong growth starting in 2026. Inflation should decrease by then. Real income is expected to “substantially accelerate.” This shift will be felt keenly by Americans.
Relief on Grocery Costs
The administration announced new tariff exemptions. Many agricultural imports are exempt now. This includes goods from Brazil. This move aims to address rising grocery costs. Experts note tariffs are not the sole cause of price hikes. Increased supply should help lower prices generally. Despite this, consumer sentiment has recently fallen. This signals caution leading into the holiday season.
