President-elect Donald Trump has announced the formation of the "External Revenue Service," a new government entity tasked with collecting tariffs, duties, and all revenue from foreign sources. The announcement, made via a post on Truth Social, outlines Trump's intentions to shift the focus of revenue collection away from domestic taxation toward foreign economic contributions.
Currently, U.S. Customs and Border Protection manages the collection of tariffs. However, Trump aims to elevate the process by creating this new agency. In his Truth Social post, he criticized existing trade agreements, stating that they have disproportionately favored global growth at the expense of American taxpayers.
"For far too long, we have relied on taxing our Great People using the Internal Revenue Service (IRS)."
Trump has proposed significant tariff increases, including a 10% hike on imports from China and a 25% levy on Canadian and Mexican products. To implement these tariffs effectively, he is considering declaring a national economic emergency. Such a move would enable him to bypass potential legislative hurdles and expedite the establishment of the External Revenue Service.
The creation of the External Revenue Service is slated for January 20, 2025, coinciding with Trump's second inauguration as President of the United States. This date marks both his return to the White House and what he referred to as the "birth date of the External Revenue Service."
"January 20, 2025, will be the birth date of the External Revenue Service."
Trump's spokesman, Steven Cheung, pointed interested parties back to Trump's Truth Social post for further details, though the announcement remains sparse on operational specifics. Despite this, Trump has made it clear that the new agency's goal is to ensure that foreign entities contributing to economic exchanges with the United States pay their "fair share."
"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."
"We will begin charging those that make money off of us with Trade, and they will start paying, FINALLY, their fair share."
This proposal marks a significant shift in U.S. policy towards international trade and taxation. It signals a more aggressive stance in trade negotiations and revenue collection from global partners. However, specific operational details regarding how the External Revenue Service will function remain forthcoming.