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Trump says he may want to give you a tariff rebate check: ‘A little rebate for people of a certain income level might be very nice’

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President Trump has suggested that as part of his tariff policy, he would consider sending out rebate checks or tariff refund checks to Americans, funded by the revenue collected from the tariffs imposed on imported goods. “We have so much money coming in, we’re thinking about a little rebate for people of a certain income level,” Trump told reporters Friday outside the White House. “A little rebate for people of a certain income level might be very nice.”

The rebate would be drawn from the significant amount of tariff revenue collected by the U.S. government—over $100 billion in the first half of 2025 alone, according to Treasury data.

Trump’s remarks about these rebate checks maybe being targeted to Americans “of a certain income level,” suggesting they would likely be means-tested, but Trump offered few details about the exact income thresholds or amount of the rebate.

The stated purposes of the rebate are to compensate Americans who may have faced higher prices due to the tariffs and potentially provide a small economic stimulus, which gives new meaning to Trump’s remarks about businesses “eating the tariffs,” with much economic debate about who is really footing the bill for them.

Any such rebate policy would likely require congressional approval, and lawmakers like Sen. Josh Hawley have indicated support for legislation that would deliver rebate checks to working Americans, but no bill text or timetable has been specified. If enacted, the administration would need to establish eligibility rules, application or automatic distribution methods, and payment logistics. This could resemble past stimulus check programs, but that is just theoretical at this point.

The rebate concept is distinct from legal or administrative tariff refunds to importers, which have been considered or mandated following court rulings questioning the legality of some tariffs. In such cases, refunds would go to the companies that paid the import duties, not directly to end consumers.

Is this legal?

Trump’s proposed tariff refund checks—rebates funded by tariff revenue and distributed directly to American consumers—would almost certainly require explicit legislation from Congress to be legally valid, given that the U.S. Constitution gives Congress—not the president—the power to levy tariffs and appropriate federal funds

The president can impose certain tariffs under delegated statutory authorities, but courts have repeatedly found that the sweeping use of these powers under the International Emergency Economic Powers Act (IEEPA) is not legal. Multiple recent court rulings (including a unanimous U.S. Court of International Trade decision) have blocked Trump’s broad tariffs for lacking legal basis under IEEPA, yet the tariffs remain in place pending appeal, and theoretically, a Supreme Court ruling.

Trump’s busy July

The suggestion of tariff rebate checks or refund checks is another new policy suggestion from Trump in a July that has been full of them, as Washington, D.C. has been roiled by a metastasizing scandal involving disgraced deceased pedophile Jeffrey Epstein. Trump’s Justice Department is facing bipartisan criticism for its decision not to release the so-called Epstein files, which the Justice Department has said do not exist. The Wall Street Journal has had a series of scoops about Trump’s past closeness to Epstein, including Trump’s name being mentioned in the files.

In July, Trump said he had reached agreement with Coca-Cola to bring real sugar back into the Coke formula, which the company partially confirmed days later. He also demanded the Washington Commanders football team revert to their former “Redskins” name, threatening political obstruction for their stadium project if they did not comply. He announced the release of 230,000 files related to Martin Luther King Jr. And he escalated his feud with the Federal Reserve and chair Jerome Powell, visiting the in-process office renovations in a hard hat and engaging in a bizarre, comedic argument with Powell about cost overruns on live television.

For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. 



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Miss Universe co-owner gets bank accounts frozen as part of probe into drugs, fuel and arms trafficking

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Mexico’s anti-money laundering office has frozen the bank accounts of the Mexican co-owner of Miss Universe as part of an investigation into drugs, fuel and arms trafficking, an official said Friday.

The country’s Financial Intelligence Unit, which oversees the fight against money laundering, froze Mexican businessman Raúl Rocha Cantú’s bank accounts in Mexico, a federal official told The Associated Press on condition of anonymity because he was not authorized to comment on the investigation.

The action against Rocha Cantú adds to mounting controversies for the Miss Universe organization. Last week, a court in Thailand issued an arrest warrant for the Thai co-owner of the Miss Universe Organization in connection with a fraud case and this year’s competition — won by Miss Mexico Fatima Bosch — faced allegations of rigging.

The Miss Universe organization did not immediately respond to an email from The Associated Press seeking comment about the allegations against Rocha Cantú.

Mexico’s federal prosecutors said last week that Rocha Cantú has been under investigation since November 2024 for alleged organized crime activity, including drug and arms trafficking, as well as fuel theft. Last month, a federal judge issued 13 arrest warrants for some of those involved in the case, including the Mexican businessman, whose company Legacy Holding Group USA owns 50% of the Miss Universe shares.

The organization’s other 50% belongs to JKN Global Group Public Co. Ltd., a company owned by Jakkaphong “Anne” Jakrajutatip.

A Thai court last week issued an arrest warrant for Jakrajutatip who was released on bail in 2023 on the fraud case. She failed to appear as required in a Bangkok court on Nov. 25. Since she did not notify the court about her absence, she was deemed to be a flight risk, according to a statement from the Bangkok South District Court.

The court rescheduled her hearing for Dec. 26.

Rocha Cantú was also a part owner of the Casino Royale in the northern Mexican city of Monterrey, when it was attacked in 2011 by a group of gunmen who entered it, doused gasoline and set it on fire, killing 52 people.

Baltazar Saucedo Estrada, who was charged with planning the attack, was sentenced in July to 135 years in prison.



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Elon Musk’s X fined $140 million by EU for breaching digital regulations

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European Union regulators on Friday fined X, Elon Musk’s social media platform, 120 million euros ($140 million) for breaches of the bloc’s digital regulations, in a move that risks rekindling tensions with Washington over free speech.

The European Commission issued its decision following an investigation it opened two years ago into X under the 27-nation bloc’s Digital Services Act, also known as the DSA.

It’s the first time that the EU has issued a so-called non-compliance decision since rolling out the DSA. The sweeping rulebook requires platforms to take more responsibility for protecting European users and cleaning up harmful or illegal content and products on their sites, under threat of hefty fines.

The Commission, the bloc’s executive arm, said it was punishing X because of three different breaches of the DSA’s transparency requirements. The decision could rile President Donald Trump, whose administration has lashed out at digital regulations, complained that Brussels was targeting U.S. tech companies and vowed to retaliate.

U.S. Secretary of State Marco Rubio posted on his X account that the Commission’s fine was akin to an attack on the American people. Musk later agreed with Rubio’s sentiment.

“The European Commission’s $140 million fine isn’t just an attack on @X, it’s an attack on all American tech platforms and the American people by foreign governments,” Rubio wrote. “The days of censoring Americans online are over.”

Vice President JD Vance, posting on X ahead of the decision, accused the Commission of seeking to fine X “for not engaging in censorship.”

“The EU should be supporting free speech not attacking American companies over garbage,” he wrote.

Officials denied the rules were intended to muzzle Big Tech companies. The Commission is “not targeting anyone, not targeting any company, not targeting any jurisdictions based on their color or their country of origin,” spokesman Thomas Regnier told a regular briefing in Brussels. “Absolutely not. This is based on a process, democratic process.”

X did not respond immediately to an email request for comment.

EU regulators had already outlined their accusations in mid-2024 when they released preliminary findings of their investigation into X.

Regulators said X’s blue checkmarks broke the rules because on “deceptive design practices” and could expose users to scams and manipulation.

Before Musk acquired X, when it was previously known as Twitter, the checkmarks mirrored verification badges common on social media and were largely reserved for celebrities, politicians and other influential accounts, such as Beyonce, Pope Francis, writer Neil Gaiman and rapper Lil Nas X.

After he bought it in 2022, the site started issuing the badges to anyone who wanted to pay $8 per month.

That means X does not meaningfully verify who’s behind the account, “making it difficult for users to judge the authenticity of accounts and content they engage with,” the Commission said in its announcement.

X also fell short of the transparency requirements for its ad database, regulators said.

Platforms in the EU are required to provide a database of all the digital advertisements they have carried, with details such as who paid for them and the intended audience, to help researches detect scams, fake ads and coordinated influence campaigns. But X’s database, the Commission said, is undermined by design features and access barriers such as “excessive delays in processing.”

Regulators also said X also puts up “unnecessary barriers” for researchers trying to access public data, which stymies research into systemic risks that European users face.

“Deceiving users with blue checkmarks, obscuring information on ads and shutting out researchers have no place online in the EU. The DSA protects users,” Henna Virkkunen, the EU’s executive vice-president for tech sovereignty, security and democracy, said in a prepared statement.

The Commission also wrapped up a separate DSA case Friday involving TikTok’s ad database after the video-sharing platform promised to make changes to ensure full transparency.

___

AP Writer Lorne Cook in Brussels contributed to this report.



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Nvidia CEO says U.S. data centers take 3 years, but China ‘can build a hospital in a weekend’

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Nvidia CEO Jensen Huang said China has an AI infrastructure advantage over the U.S., namely in construction and energy.

While the U.S. retains an edge on AI chips, he warned China can build large projects at staggering speeds.

“If you want to build a data center here in the United States from breaking ground to standing up a AI supercomputer is probably about three years,” Huang told Center for Strategic and International Studies President John Hamre in late November. “They can build a hospital in a weekend.”

The speed at which China can build infrastructure is just one of his concerns. He also worries about the countries’ comparative energy capacity to support the AI boom.

China has “twice as much energy as we have as a nation, and our economy is larger than theirs. Makes no sense to me,” Huang said.

He added that China’s energy capacity continues to grow “straight up”, while the U.S.’s remains relatively flat.

Still, Huang maintained that Nvidia is “generations ahead” of China on AI chip technology to support the demand for the tech and semiconductor manufacturing process.

But he warned against complacency on this front, adding that “anybody who thinks China can’t manufacture is missing a big idea.”

Yet Huang is hopeful about Nvidia’s future, noting President Donald Trump’s push to reshore manufacturing jobs and spur AI investments.

‘Insatiable AI demand’

Early last month, Huang made headlines by predicting China would win the AI race—a message he amended soon thereafter, saying the country was “nanoseconds behind America” in the race in a statement shared to his company’s X account.

Nvidia is just one of the big tech companies pouring billions of dollars into a data center buildout in the U.S., which experts tell Fortune could amount to over $100 billion in the next year alone.

Raul Martynek, the CEO of DataBank, a company that contracts with tech giants to construct data centers, said the average cost of a data center is $10 million to $15 million per megawatt (MW), and a typical data centers on the smaller side requires 40 MW.

“In the U.S., we think there will be 5 to 7 gigawatts brought online in the coming year to support this seemingly insatiable AI demand,” Martynek said.

This shakes out to $50 billion on the low end, and $105 billion on the high end.



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