Trump’s Proposed $2,000 Tariff Dividend: Key Mistakes to Avoid President Donald Trump’s proposed “tariff dividend” would send $2,000 checks to low- and middle-income Americans, funded by tariff revenue from imported goods. While the idea has generated excitement, the payment is far from guaranteed and comes with several potential pitfalls for households expecting it. Experts say the first mistake is spending the money before it arrives. The plan still requires congressional approval, and the Supreme Court is reviewing the administration’s tariff authority. Even if approved, checks may not arrive until mid-2026 — or later. Consumers are also being warned about scams, including fake “early application” websites and social-media ads. The Better Business Bureau says there is no sign-up process for the tariff dividend and stresses that federal programs never require pre-registration through unofficial sites. Another major question is whether the money will be taxable. Financial experts note that past stimulus checks were structured as tax credits and were not considered taxable income — but no IRS guidance exists yet for this proposal. Families are advised to keep records and prepare for the possibility of tax reporting. Analysts also recommend avoiding spending the check on non-essentials. A $2,000 payment can disappear quickly. Using it to pay overdue bills, reduce high-interest debt, or build an emergency fund provides the most long-term benefit. Households receiving income-based benefits such as SNAP, Medicaid, or housing assistance should also verify whether a one-time payment could temporarily affect their eligibility. And finally, experts warn that inflation could reduce the value of the check if it arrives later than expected. Saving or investing part of the money may help offset future price increases. Overall, the proposed dividend may help families — but only if used wisely, and only if it becomes a reality.