President-elect Donald Trump announced plans on Tuesday to establish a new department called the “External Revenue Service” (ERS) on January 20, the date of his inauguration. The ERS will be responsible for collecting tariffs, duties, and other revenues from foreign sources, a move Trump claims will ensure that foreign entities contribute fairly to the US economy.
“For far too long, we have relied on taxing our Great People using the Internal Revenue Service (IRS). Through soft and pathetically weak Trade agreements, the American Economy has delivered growth and prosperity to the World, while taxing ourselves,” Trump said in a Truth Social post.
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“It is time for that to change. 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,” he continued. “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’s proposed tariffs include a 25% duty on imports from Canada and Mexico and a 60% tariff on goods from China, drawing concerns about potential retaliatory measures that could impact US exports. Economists warn that such extensive tariffs could lead to increased prices for American consumers and disrupt trade flows.
The announcement has raised questions about whether the ERS will function as a new agency or merely rebrand existing roles performed by Customs and Border Protection, which is already responsible for tariff collections. The creation of a new agency also requires Congressional approval.
Trump’s proposals align with his campaign promises to utilize tariffs as a means to generate revenue and incentivize domestic manufacturing.
Connor Walcott is the lead writer for Valuetainment.com. Follow Connor on X and look for him on VT’s “The Unusual Suspects.”
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