President-elect Donald Trump announced his plans to create an "External Revenue Service" to collect tariffs, duties, and revenue from foreign sources in a post on Truth Social. Trump criticized the current system of relying on the Internal Revenue Service (IRS) to tax American citizens and stated that it is time for a change. He emphasized the need for foreign entities benefiting from trade with the U.S. to pay their fair share.
The proposed government entity, the External Revenue Service, aims to shift the focus from taxing American citizens to collecting revenue from foreign sources. Trump did not provide further details about the agency but stated that it will be officially launched on January 20, 2025, coinciding with his second non-consecutive term in the White House.
In response to questions about the plan, Trump's spokesman Steven Cheung directed inquiries to the President-elect's post on Truth Social. This announcement comes amidst reports that Trump is considering declaring a national economic emergency to justify imposing tariffs, including a 10% increase on imports from China and 25% fees on products from Canada and Mexico.
The creation of the External Revenue Service reflects Trump's ongoing efforts to reshape U.S. trade policies and ensure that foreign entities pay their share for benefiting from trade with the United States. The implementation of tariffs and the establishment of the new agency could have significant implications for the U.S. economy and international trade relations. It remains to be seen how these proposals will be received and implemented moving forward.