President-elect Donald Trump has announced his plans to create a new federal agency, the ‘External Revenue Service’ (ERS), tasked with collecting debts and tariffs from other countries.
“For far too long, we have relied on taxing our Great People using the Internal Revenue Service (IRS),” Trump posted on Truth Social.
“Through soft and pathetically weak Trade agreements, the American Economy has delivered growth and prosperity to the World, while taxing ourselves. It is time for that to change,” he added.
Trump said the new agency would handle all revenue from foreign trade, including tariffs and debt that foreign nations owe America.
During his presidential campaign, Trump suggested a wide range of tariffs, including a 10% to 20% tax on all imported goods and up to 60% on imports from China. Last month, Trump announced plans to place a 25% tariff on goods from both Canada and Mexico unless these countries take stronger measures to curb illegal immigration and the flow of drugs into America.
“This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!” the President-elect posted to Truth Social on November 25, 2024.
At a recent press conference at Mar-a-Lago, Trump promised to usher in what he called a “golden age for America,” an era he believes depends on the enforcement of stricter trade policies. He also signaled that additional tariffs could be imposed gradually under existing executive powers, with the potential for monthly increases ranging from 2% to 5% on certain foreign goods, according to Fox Business.
While tariffs and duties are already collected by U.S. Customs and Border Protection, with revenue funneled into the federal General Fund, creating the ERS would aim to streamline the collection process into one system.
Ahead of his January 20 inauguration, Trump reiterated that foreign nations must pay their fair share to trade with the U.S.
“I am today announcing that I will create the EXTERNAL REVENUE SERVICE to collect our Tariffs, Duties, and all Revenue that come from Foreign sources. We will begin charging those that make money off of us with Trade, and they will start paying, FINALLY, their fair share. January 20, 2025, will be the birth date of the External Revenue Service. MAKE AMERICA GREAT AGAIN!” Trump declared on January 14.