Tariffs continue to shape the economic landscape — and for many Americans, they’ve meant higher prices on everyday goods. The Trump administration’s renewed tariffs have raised costs across major industries, with economists warning that consumers are ultimately footing the bill. The Supreme Court is set to review the legality of some of Trump’s tariff actions in November, a decision that could determine whether the measures remain in place. (1)
The Trump administration claims that tariffs will strengthen U.S. manufacturing and create jobs, but analysts say the immediate effect has been higher prices for households and slower retail growth. According to the Budget Lab at Yale University, tariffs translated to an average cost of about $3,800 per household in 2024. (2)
However, the American Worker Rebate Act, introduced by Republican Sen. Josh Hawley of Missouri, aims to provide some relief. The bill proposes payments of “at least” $600 to lower- and middle-income adults and their dependent children to help offset the economic burden of tariffs. (3)
Here’s what the bill could mean for you — and whether the proposed rebates would really make a difference.
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How the American Worker Rebate Act would work
The American Worker Rebate Act proposes payments of “at least” $600 per adult and dependent child to offset the average household costs from new tariffs.
Individuals earning over $75,000 a year would see their rebate reduced, and payments would begin to phase out for married couples earning more than $150,000. The bill also stipulates that rebates wouldn’t be issued until after December 31, 2026, giving Congress time to calculate the total revenue collected from tariffs. (4)
As of October 2025, the bill remains under committee review in the Senate and has not yet been scheduled for a vote.
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Tariff’s impact on the economy, and whether rebates can actually offset the cost
Tariffs have hit both consumers and retailers hard. RSM US economist Joe Brusuelas notes that goods-related businesses have seen “four straight months of declines since May.” (5)
Major brands like Walmart, Nike and Hasbro have warned that consumers will face price increases due to higher import fees, according to CNN. (6, 7, 8) Some goods, like coffee, have already seen sharp price increases, with higher costs to come in 2026. Others have predicted higher prices for cars, and even a deepening of the housing crisis as imported building materials become even more expensive. (9)
The Tax Foundation estimates that the tariffs could reduce GDP by 0.8%, cut market income by 1.5% in 2026, and result in an average household burden of $1,300 to $1,600. (10)
While the tariffs were intended to boost American manufacturing power at home, even Treasury Secretary Scott Bessent acknowledged, “We can’t snap our fingers and have factories built,” though he previously predicted job growth in construction and manufacturing as a result of the reforms.
Some Republicans argue the proposal doesn’t go far enough to offset the long-term economic impact of tariffs, while others see it as a political move amid growing voter frustration with higher prices.
Supporters of the American Worker Rebate Act argue that direct payments could help households manage higher prices, especially for essentials like groceries, fuel and housing materials. Critics, however, say the rebates would only recoup a fraction of what families are losing, and that they are a signal that Americans have been overtaxed.
On top of that, some economists warn that rebates could serve more as political messaging than real financial relief. As Forbes contributor Robert Goulder writes, rebates are often used as political tools during election cycles. (11)
If the bill does pass in Congress, even a $600 payment can make an impact when used strategically. Putting any windfall toward savings, debt or essential expenses rather than impulse purchases can help strengthen your long-term financial position.
The Supreme Court’s upcoming review of Trump’s tariff actions could influence the trajectory of the American Worker Rebate Act. If the Court upholds the tariffs, Congress may face mounting pressure to pass relief measures.
Either way, for now, the bill remains in committee, and since no rebates would be issued until at least 2027, Americans will need to continue budgeting and watch closely to see whether Washington delivers relief.
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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.
Congress.gov (1), (3), (4); The Budget Lab at Yale Univertsity (2); CNN (5), (6), (7), (8); The New York Times (9); The Tax Foundation (10); Forbes (11)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.