WASHINGTON — On Tuesday, President-elect Donald Trump unveiled his intentions to establish an agency called the External Revenue Service, which would be responsible for collecting tariffs and various revenues from foreign countries.
In a post on his social media platform, Truth Social, Trump stated, “We will begin charging those that make money off of us with Trade, and they will start paying.” He drew a parallel between this proposed agency and the Internal Revenue Service, which handles domestic taxation in the United States.
Creating a new federal agency will require the approval of Congress, where Republicans currently have the majority in both the House of Representatives and the Senate. Despite Trump’s promise to reduce the size of government, this new agency would take on responsibilities that are already performed by established entities, such as the Commerce Department and U.S. Customs and Border Protection, which are tasked with collecting duties and revenues from foreign entities.
Additionally, Trump has appointed two prominent business figures to lead the Department of Government Efficiency, abbreviated as DOGE. This non-governmental task force is designed to identify strategies for downsizing federal personnel, eliminating programs, and reducing regulatory burdens, as part of what Trump labels as his “Save America” initiative for a potential second term.
Billionaire entrepreneur Elon Musk and fellow business innovator Vivek Ramaswamy are spearheading DOGE’s ambitious mission to streamline operations within the federal government.
As Trump approaches his second term, tariffs have emerged as a pivotal element of his economic strategy, with indications of imposing a potential 25% tax on goods from allied nations like Canada and Mexico, and a staggering 60% on imports from China.
Economists have expressed concerns regarding the implications of these tariffs, suggesting that the financial burden will ultimately be borne by consumers, and many regard tariffs as an inefficient means for governments to generate revenue and foster economic growth.
Democratic leaders promptly condemned the proposal for the External Revenue Service. Oregon Senator Ron Wyden, the leading Democrat on the Senate Finance Committee, remarked, “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,” highlighting the partisan divide over this issue.
