Trump Suggests Establishing a New Agency to Gather Revenue from International Sources
President-elect Donald Trump unveils the establishment of the 'External Revenue Service' to manage tariffs and duties, indicating a change in U.S. trade policy as his inauguration nears.
President-elect Donald Trump announced plans on Tuesday to establish a new government agency called the 'External Revenue Service.' This agency would be responsible for gathering tariffs, duties, and other revenue from foreign sources.
This initiative is part of his preparations to introduce new import tariffs upon taking office on January 20 for his second term. Trump made this announcement on Truth Social, where he stated that Americans have been excessively taxed by the Internal Revenue Service. He argued that foreign entities benefiting from trade with the U.S. have not been contributing fairly.
The plan suggests a significant overhaul of how the U.S. collects revenue, concentrating on foreign sources, although specific details are still unclear.
Trump did not specify if this new agency would take over the U.S. Customs and Border Protection’s role in collecting tariffs or the IRS’s duties regarding tax collection from foreign corporate and individual incomes.
The announcement has sparked concerns about potentially increasing government bureaucracy, which might contradict Trump’s previous efforts to streamline government functions, such as his informal Department of Government Efficiency led by Elon Musk and Vivek Ramaswamy.
Trump’s proposal to replace income taxes with tariffs, a concept he discussed during his presidential campaign, has been met with doubt.
Economists, including those from the Tax Foundation, suggest that a 20% tariff would yield significantly less revenue than the current tax system, projecting $3.3 trillion over a decade compared to the IRS’s potential annual revenue of up to $18 trillion.
Senator Ron Wyden, the leading Democrat on the Senate Finance Committee, criticized Trump’s plan, describing it as a hidden tax increase on American families and small businesses.
Trump has proposed specific tariff rates, including a 10% tariff on global imports, 25% on imports from Canada and Mexico, and 60% on goods from China.
Experts warn that these tariffs might disrupt trade flows, raise costs, and lead to retaliation against U.S. exports, further complicating the U.S. trade environment.
This initiative is part of his preparations to introduce new import tariffs upon taking office on January 20 for his second term. Trump made this announcement on Truth Social, where he stated that Americans have been excessively taxed by the Internal Revenue Service. He argued that foreign entities benefiting from trade with the U.S. have not been contributing fairly.
The plan suggests a significant overhaul of how the U.S. collects revenue, concentrating on foreign sources, although specific details are still unclear.
Trump did not specify if this new agency would take over the U.S. Customs and Border Protection’s role in collecting tariffs or the IRS’s duties regarding tax collection from foreign corporate and individual incomes.
The announcement has sparked concerns about potentially increasing government bureaucracy, which might contradict Trump’s previous efforts to streamline government functions, such as his informal Department of Government Efficiency led by Elon Musk and Vivek Ramaswamy.
Trump’s proposal to replace income taxes with tariffs, a concept he discussed during his presidential campaign, has been met with doubt.
Economists, including those from the Tax Foundation, suggest that a 20% tariff would yield significantly less revenue than the current tax system, projecting $3.3 trillion over a decade compared to the IRS’s potential annual revenue of up to $18 trillion.
Senator Ron Wyden, the leading Democrat on the Senate Finance Committee, criticized Trump’s plan, describing it as a hidden tax increase on American families and small businesses.
Trump has proposed specific tariff rates, including a 10% tariff on global imports, 25% on imports from Canada and Mexico, and 60% on goods from China.
Experts warn that these tariffs might disrupt trade flows, raise costs, and lead to retaliation against U.S. exports, further complicating the U.S. trade environment.
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