President-elect Donald Trump has unveiled plans to create a new federal agency, the External Revenue Service (ERS), aimed at collecting financial obligations from foreign nations and trade partners benefiting from the American economy.
“For far too long, the United States has taxed its own hardworking citizens through the Internal Revenue Service,” Trump declared on TRUTH Social. “Meanwhile, weak trade agreements have allowed other countries to thrive at our expense. This stops now. I am establishing the External Revenue Service to collect tariffs, duties, and other revenues owed by foreign entities.”
Trump emphasized that the new agency, set to commence operations on January 20, 2025, will ensure that countries profiting from trade with the U.S. will “finally pay their fair share.” His announcement, signed off with his signature slogan, “MAKE AMERICA GREAT AGAIN,” outlines a bold shift in how the U.S. approaches trade revenue.
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Speaking at Mar-a-Lago last week, the president-elect doubled down on his intent to impose hefty tariffs on imports from Mexico and Canada if they fail to stem the flow of drugs and illegal migrants into the United States. Trump envisioned a “golden age for America,” citing unmatched access to abundant natural resources as a key advantage.
During his campaign, Trump proposed tariffs ranging from 10% to 20% on general imports and as high as 60% on goods from China. He also threatened to impose a blanket 25% tariff on all imports from Mexico and Canada upon taking office. However, the precise mechanics of his administration’s trade policies remain unclear.
According to Bloomberg, Trump’s transition team is exploring strategies to phase in tariff increases under the International Emergency Economic Powers Act (IEEPA). One approach under consideration involves gradually hiking tariffs by 2% to 5% per month to mitigate inflationary pressures.
Key architects of Trump’s economic strategy include Scott Bessent, tapped for Treasury Secretary; Kevin Hassett, slated to head the National Economic Council; and Stephen Miran, chosen to lead the Council of Economic Advisers.
Meanwhile, CBS News pointed out that existing federal agencies, including U.S. Customs and Border Protection, already handle tariff collection and enforcement. These revenues flow into the General Fund of the United States, raising questions about the necessity of the new ERS.
Trump’s rhetoric on trade has also targeted China, vowing substantial tariffs to hold Beijing accountable for allegedly facilitating illegal drug shipments into the U.S. He warned the European Union to boost its purchase of American oil and gas or face tariffs.
As Trump’s inauguration nears, the world is watching to see how his aggressive trade policies will reshape global commerce and America’s economic future.