US President Donald Trump has warned that the United States could face an “economic and national security disaster” if the Supreme Court rules against his administration’s use of emergency powers to impose sweeping tariffs on imports from nearly every country.

Speaking at the White House on Monday, Trump announced that his administration planned to issue a $2,000 payment to lower- and middle-income Americans using what he described as “tariff dividends,” with the remaining proceeds directed toward reducing the US national debt.

“We’re going to issue a dividend to our middle-income people and lower-income people — about $2,000 — and we’re going to use the remaining tariffs to lower our debt,” Trump said during the swearing-in ceremony of his new ambassador to India, Sergio Gor.

Kevin Hassett, the president’s top economic adviser, said the administration had initially intended to use the tariff revenues solely for deficit reduction but was now considering direct payments following a “big surge in tax revenues.”

Trump’s remarks come as his approval ratings have dipped amid persistent inflation and voter concerns over living costs, which contributed to recent Democratic victories in New Jersey, Virginia, and New York City.

The Supreme Court heard arguments last week on whether Trump exceeded his authority under the 1977 International Emergency Economic Powers Act (IEEPA), which does not explicitly authorise tariffs. Some justices questioned how refunds—potentially exceeding $100 billion—could be processed if the tariffs were struck down.

Trump rejected those estimates, claiming repayments could surpass $2 trillion, and insisted such a ruling would devastate the economy. “It would be a national security disaster if we lost the case in the Supreme Court,” he said.