- Trump proposes tariff-funded stimulus amid inflation and government shutdown.
- Crypto market expected to react like in 2021.
- Legal challenges threaten implementation of tariff-based plan.
In early October 2025, former U.S. President Donald Trump announced a new stimulus proposal in a televised interview, aiming to send Americans $1,000 to $2,000 tariff-funded checks during the government shutdown.
The proposal has sparked significant reactions within the crypto industry, potentially impacting market dynamics amidst ongoing inflation and legal challenges surrounding tariff revenue collection.
Former President Donald Trump announced a tariff-funded stimulus proposal aiming to issue checks of $1,000 to $2,000 to Americans. This comes amid ongoing inflation concerns and a U.S. government shutdown. “A dividend to the people of America,” said Trump, emphasizing the plan’s potential impact.
Key players include Trump and Senator Josh Hawley, who supports the American Worker Rebate Act. Economic figures like Treasury Secretary Scott Bessent express concern over potential refund requirements, which could derail the plan.
The proposal could serve as a catalyst for the cryptocurrency market, with Bitcoin surging above $119,000. Analysts and crypto insiders compare this to the 2021 rally following previous stimulus disbursements.
Financially, the plan relies heavily on tariff collections, which have shown a shortfall, raising doubts about its feasibility. Legal challenges remain a barrier, with significant implications if the Supreme Court rules against it.
Critics, including Elizabeth Warren, highlight potential conflicts of interest due to Trump Media’s $1.5 billion crypto investments. Legal and regulatory proceeding outcomes remain a critical focus to watch.
Historically, direct stimulus injections have triggered strong movements in cryptocurrency markets. Analysts foresee possible liquidity inflows, while previous patterns show Bitcoin dominance shifting during such periods. Investors are watching governmental and legal actions closely.
