The idea of President Donald Trump distributing tariff revenue as a dividend of $1,000 to $2,000 per person to the American people might sound like a sweet temptation. The immediate joy of having cash in hand could certainly be attractive to working-class people. However, we must face the dark shadow lurking behind the thin wrapping of this short-term "tariff dividend"—a shadow that is driving the U.S. economy and society into the worst possible situation.
The current plunge in the U.S. economy and society is not simply a matter of the business cycle. At its root is the political conduct of President Donald Trump, which is extremely personal and emotional, a "loss of reason," particularly his unilateral and unpredictable tariff policies that destroy the international trade order. The indiscriminate imposition of tariffs under the slogan of "America First" has shattered trust with allies and fostered distrust in the international trade system that the U.S. has led for decades.
Tariffs are ultimately passed on to importers or the final consumers, the American people. In the end, the money returned as a dividend is merely a "tax" that consumers have already paid by buying goods at higher prices. It appears to be nothing more than an attempt to temporarily blind the public with a small amount of money and force silence, while burdening them with the double strain of driving up inflation. This is a classic example of populism, a highly irrational and dangerous approach that undermines the long-term stability and prosperity of the nation.
President Donald Trump touts the massive tariff revenue as "spoils of war that the outside world is using to fill America's coffers," but the long-term damage caused by the loss of U.S. credibility in the international trade market and the disruption of global supply chains is astronomical. The attitude of ignoring international norms and agreements, and insisting on guiding trade relations solely by the logic of power, will weaken America's diplomatic standing and ultimately pass on greater uncertainty and costs to American businesses and consumers.
A dividend of $1,000 or $2,000 may temporarily quench the thirst, but the economic catastrophe that a nation without trust will face will be much larger and deeper. Trump's style of politics, which throws pocket change at the public while ignoring structural problems, is a dangerous path that will ultimately lead the United States to ruin. The U.S. must reject this "sweet poison" now and choose rational, sensible policies for sustainable prosperity, restoring trust as a responsible member of the international community.
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