Kevin O’Leary blasts Trump’s $2,000 tariff dividend as a ‘silent tax’ on Americans. What to do with it if you get it

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Recently, President Donald Trump shared a social media post to Truth Social promising to give a tariff “dividend” of at least $2,000 to every American, “not including high income people!” but Kevin O’Leary made it clear he thinks this is a terrible idea (1).

The Shark Tank investor shared an appearance he made on CNN discussing his perspective (2).

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“Everyone loves the idea of a free check, especially in a tough economy,” O’Leary tweeted. “But here’s the truth, and it’s not always popular — sending out $2,000 checks funded by tariffs might feel good in the moment, but it does nothing to fix the core problem.”

The reported $600 billion a year this would cost is double the revenue tariffs bring in (3). O’Leary says this will just push inflation even higher: “Inflation is a silent tax that punishes every American, especially the ones who can least afford it.”

He then shared the clip of a CNN reporter asking him about the check and what he believes should be done instead.

“We would rather see this put against the national deficit,” O’Leary replied. “We would rather see the debt drawn down — that's what keeps the bond market intact, that's what drops mortgage rates.”

Mr. Wonderful made it clear he sees this tactic as giving people “money for nothing,” but if you’re one of many struggling to pay bills this year, a $2,000 check could provide some temporary relief.

How to use a potential $2,000 payout wisely

While nothing Trump shares on Truth Social can be relied on until it’s made official, if a $2,000 check does suddenly appear in your mailbox, there are many opportunities to make the most of it.

Clear high-interest debt

High-interest debt, like credit card debt, can absolutely sink you financially. Clearing it as fast as possible is an important strategy, allowing you the freedom to start saving and investing. Using that extra $2,000 to clear debt is a solid strategy.

Two popular debt-repayment strategies you can consider are the avalanche and snowball methods. The avalanche approach takes aim at your largest debt first, paying it down to avoid accruing substantial interest. The snowball technique works by paying off smaller debts first before tackling your biggest debt.

Once you’ve cleared your debt, it’s time to start saving. An easy way to do this is with Acorns, an investing platform that can help you squirrel away your spare change.

Whenever you make a purchase on a linked debit or credit card, Acorns rounds up the difference and deposits it into an ETF tailored to your risk tolerance. Every purchase — from your morning coffee to weekly groceries — can help you build a better financial future.

If you want to boost your savings, Acorns also allows you to set up recurring monthly deposits. And the best part? If you sign up with just a $5 recurring contribution, Acorns can give you an extra $20 bonus investment to get you off to a good start.

Although it might be hard to think about saving when you enter life after debt, tools like Acorns can help you build your momentum back up.

Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)

Save for a rainy day

If you’re debt-free but don’t have an emergency fund built up, that $2,000 could make for a great start. Ideally, your emergency fund should be three to six months of fixed expenses, but that’s a lot of money to keep sitting around in a checking account earning nothing. To offset this, it’s often best to keep that cash in a high-yield savings account that earns interest.

A Wealthfront Cash Account can help. This high-yield account offers competitive interest rates while keeping your cash easily accessible in case of an emergency.

While it can provide a base variable APY of 3.50%, new clients can get a 0.65% boost over their first three months for a total APY of 4.15%. That’s over ten times the national deposit savings rate, according to the FDIC’s November report.

With no minimum balances or account fees, 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks.

Turn it into more money

If your emergency fund is already where it needs to be, you might consider investing that $2,000 so it can grow into even more money. Depending on your preference for risk, you could invest in ETFs and index funds or try out a more hands-on approach.

One of the easiest ways to do this is with a self-directed investing account with SoFi. It allows for a DIY approach, meaning you can invest that $2,000 in low-cost index funds like the S&P 500 without paying sneaky commission fees.

SoFi is designed to help you learn how to invest as you go, providing real-time investing news, curated content and all the data you need to make smart investing decisions.

Plus, for a limited time, you can even get up to $1,000 in stock when you fund a new account.

Diversify your portfolio

Seasoned investors might want to consider using that extra $2,000 to ensure their portfolio is as diversified as it can be. Many advisors recommend a 60/40 split between stocks and bonds. However, alternative assets are becoming progressively more accessible to investors and can offer some protection against market dips.

If you’re already heavily invested in the stock market, this might be a good time to try real estate.

You can tap into this market by investing in shares of vacation homes or rental properties through Arrived.

Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property. That means no midnight maintenance calls or touchy tenants.

To get started, simply browse through their selection of vetted properties, each picked for its potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100, potentially earning quarterly dividends.

If you’re already a real estate investor with property, however, there are still tools you can take advantage of to lighten the load.

One option is Baselane, which can help you manage your properties more efficiently. Baselane can save investors an average of $5,000 a year through automated rent payments, visibility improvements and built-in financial tools. Its AI-powered bookkeeping software could even shave up to 150 hours off of your spreadsheet labor a year, depending on the size of your portfolio.

Even better, Baselane is already trusted by 50,000 plus real estate investors.

Baselane’s Core tier includes accounting, tax packages, Schedule E reports and automated rent and late fee reminders for free. You can even sign up today and get a 30-day free trial of their Smart tier, including fast rent deposits in 2 business days and VIP priority support.

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Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

@realDonaldTrump (1); @kevinolearytv (2); yahoo!finance (3)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.