On January 14th, President-elect Donald Trump announced his plan to establish a new agency called the “External Revenue Service” which will be responsible for collecting tariffs and other taxes from foreign countries.
In a post on his social media platform, Truth Social, Trump stated that the External Revenue Service will be set up specifically to collect tariffs and all foreign taxes for the United States.
“We will start charging those who make money off of us through trade, and eventually they will start paying their fair share. January 20, 2025, will be the birthday of the External Revenue Service,” Trump wrote in the post.
January 20, 2025, coincides with Trump’s inauguration day.
Trump emphasized that while the U.S. economy is bringing growth and prosperity to the world, it is also taxing Americans. He believes it is time to change this situation.
However, Trump did not provide details about the establishment of this new agency in his post.
The creation of a new government agency requires approval through a bill passed by Congress. Given that the Republican Party currently controls both houses of Congress, Trump’s plan is likely to materialize.
As Trump begins his second presidential term, tariffs have become a cornerstone of his economic agenda. The new U.S. administration may impose a 25% tariff on all goods from allied countries such as Canada and Mexico, and a 60% tariff on goods from China (PRC).
Currently, tariffs in the United States are collected by the Customs and Border Protection (CBP) agency. The agency’s staff is responsible for reviewing documents, auditing accounts, collecting taxes and fines, and then depositing the funds into the Treasury. Tariff revenue accounts for less than 2% of the total federal revenue in the United States.