WASHINGTON — President-elect Trump announced plans on Tuesday to establish a new agency, the External Revenue Service, tasked with collecting tariffs and other revenue from foreign countries.
Trump stated on Truth Social, “We will begin charging those that make money off of us with Trade, and they will start paying.” He likened this new agency to the Internal Revenue Service, the nation’s domestic tax collection body.
The creation of this agency necessitates congressional approval, a process facilitated by the Republican majority in both the House and the Senate.
Trump, despite his pledge to downsize the government, proposes this new agency to perform functions already undertaken by existing entities, such as the Commerce Department and Customs and Border Patrol, which currently handle duties and revenue collection from other nations.
The President-elect has appointed two business leaders to head his Deregulatory Opportunity for Growth and Efficiency (DOGE) task force. This non-governmental group aims to identify ways to reduce federal employees, programs, and regulations, all components of Trump’s “Save America” platform for his second term.
Billionaire Elon Musk and fellow entrepreneur Vivek Ramaswamy are spearheading the DOGE’s efforts to streamline the federal government.
Tariffs, including potential 25% levies on goods from allies like Canada and Mexico and a 60% levy on Chinese goods, are central to Trump’s economic agenda for his second term.
Economists generally express skepticism, predicting that these tariffs will burden consumers and viewing them as an inefficient method of government revenue generation and economic growth.
Democratic lawmakers swiftly criticized the External Revenue Service proposal.
“No amount of silly rebranding will hide the fact that Trump is planning a multi-trillion-dollar tax hike on American families and small businesses to pay for another round of tax handouts to the rich,” stated Oregon Senator Ron Wyden, the Senate Finance Committee’s ranking Democrat.
