In a surprise announcement on Tuesday morning, President-elect Donald Trump revealed that his administration would be launching an “External Revenue Service” aimed at collecting tariffs and revenue from foreign countries he claims are manipulating the international economy to the detriment of the United States.
The news, shared by the president-elect on Truth Social, was a welcome surprise to supporters who back the Republican’s push for steep tariffs on countries like China, India, and Mexico. These countries are accused of stifling the U.S. economy by utilizing overseas labor to produce goods at lower costs before importing them. Trump framed the change as a way to shift the burden of funding the federal government away from American taxpayers and onto the countries that benefit most from a strong U.S. economy.
Trump wrote: “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 date of the External Revenue Service. MAKE AMERICA GREAT AGAIN!”
If enacted, the new arm of the government could ostensibly work to enforce Trump’s promised tariffs on the aforementioned countries; he has said he will increase tariffs on imports from China by 10% and impose 25% fees on products from Canada and Mexico, CNBC reported.
In addition to his commitment to creating a new federal agency focused on external revenue, Trump has promised to launch the much-discussed Department of Government Efficiency, which will be co-led by Elon Musk and Vivek Ramaswamy. Both Musk and Ramaswamy have reached out to Democrats to join the new administration’s effort to eliminate waste, fraud, and abuse of federal tax dollars, and so far, they seem to be making progress. In December, House Rep. Jared Moskowitz (D-FL) became the first Democrat to join a congressional caucus that will support the department’s mission.
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