President-elect Donald Trump announced on Tuesday plans to establish a new agency called the “External Revenue Service” to collect money from foreign countries owed to the United States.
“For far too long, we have relied on taxing our Great People using the Internal Revenue Service (IRS),” Trump wrote on TRUTH Social.
“Through soft and pathetically weak Trade agreements, the American Economy has delivered growth and prosperity to the World, while taxing ourselves,” the president-elect continued. “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 added: “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!”
CANADA READIES TRUMP TARIFFS RESPONSE: ‘IN A TRADE WAR, THERE ARE NO WINNERS’
At a press conference at his Mar-a-Lago estate last week, Trump promised to levy “substantial tariffs” against Mexico and Canada if they don’t adequately curb the flow of drugs and migrants across their borders with the U.S. The president-elect vowed to usher in “a golden age for America,” adding that the United States has access to natural resources “no one else has.”
On the campaign trail, Trump had suggested levying minimum tariffs of 10% to 20% on all imported goods, and 60% or more on imports from China. Last month, he threatened that he would impose a 25% across-the-board tariff on all imports from Canada and Mexico, effective his first day in office, but it’s unclear how the incoming administration’s plans will actualize.
TRUMP TELLS EU TO BUY MORE AMERICAN-MADE OIL AND GAS OR FACE ‘TARIFFS ALL THE WAY
Bloomberg reported on Tuesday that Trump’s transition team was studying how to gradually increase tariffs month-to-month by drawing on executive authority granted under the International Emergency Economic Powers Act. One option reportedly considered is to raise tariffs gradually by about 2% to 5% a month on trade partners with the goal of offsetting any inflation fallout.
Scott Bessent, Kevin Hassett and Stephen Miran are leading development of the tariffs strategy, Bloomberg reported, citing sources familiar with the matter. Trump tapped them to become Treasury Secretary, director of the National Economic Council, and leader of the Council of Economic Advisers, respectively.
CBS News, meanwhile, noted that federal agencies that collect revenue from tariffs already exist. Tariffs are established by the Department of Commerce and the Office of the United States Trade Representative, but collection and enforcement is primarily carried out by U.S. Customs and Border Protection. Those collections are then deposited into the General Fund of the United States.
Trump has also proposed hefty tariffs against China to hold Beijing accountable for allegedly shipping illegal drugs smuggled into the United States.
The president-elect also threatened that the European Union must purchase more American oil and gas or else be subjected to “TARIFFS all the way!”
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