President-Elect Trump Announces Creation of 'External Revenue Service' to Collect Tariffs

| President-elect Donald J. Trump

In an announcement made on social media this Tuesday, President-elect Donald Trump revealed plans to establish a new agency, the "External Revenue Service" (ERS), tasked with collecting revenue from tariffs. 

Trump posted: "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. 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. January 20, 2025, will be the birth day of the External Revenue Service. MAKE AMERICA GREAT AGAIN! "

Tariffs, which are taxes on imports, are typically paid by U.S.-based importers to U.S. Customs and Border Protection (CBP). Critics argue that the name "External Revenue Service" may mislead the public about who actually bears the cost of tariffs, as these taxes are usually passed on to U.S. consumers in the form of higher prices. Despite the pushback, Trump's proposal aligns with his broader agenda to renegotiate trade agreements and increase revenue from foreign sources. His administration has previously imposed tariffs on a range of goods, arguing that such measures protect American industries and workers from unfair foreign competition.

As the January 20, 2025, inauguration approaches, further details about the structure and implementation of the External Revenue Service are expected to emerge. The proposal will likely continue to be a focal point of economic and political discourse in the coming months.