President-elect Donald Trump has revealed plans to establish a new government agency, the External Revenue Service (ERS), which is supposedly set to begin operations on Jan. 20, 2025.
The ERS, likely to operate under the Treasury Department, will focus on collecting revenues from foreign sources. Trump framed the move as part of his broader efforts to address trade imbalances and ensure foreign entities contribute their “fair share” to the U.S. economy.
“We will begin charging those that make money off of us with Trade, and they will start paying, FINALLY, their fair share,” Trump stated in a Truth Social post shared Tuesday morning. He described the agency’s launch date as the “birth date of the External Revenue Service.”
However, Andrew Feinberg, the White House correspondent for the U.K.’s Independent, argues that “the president-elect seems unaware that an ‘external revenue service’ has existed since July 31, 1789.”
Feinberg stated that this day marks the anniversary of George Washington signing the legislation that created the U.S. Customs Service, the predecessor of today’s U.S. Customs and Border Protection.
The Hill has more as reactions continue to come in:
Trump pledged during his 2024 campaign to impose import taxes of 10 percent to 20 percent on all foreign goods, with tariffs of up to 60 percent on Chinese goods. He stepped up those threats after his election with threats to impose additional tariffs on goods from Canada, Mexico and China — the U.S.’s three largest trading partners.
Collecting tariffs is currently the responsibility of Customs and Border Protection (CBP), which is housed within the Department of Homeland Security.
Under the current system, CBP collects tariffs from U.S.-based importers of foreign goods subject to import taxes. The importer — not the foreign country or company from which the product was exported — must pay the tax to CBP.
In his first term in office, Trump imposed tariffs on foreign steel and aluminum, including from Canada and Mexico, and compelled both countries to renegotiate the North American Free Trade Agreement with terms meant to boost U.S. manufacturing and improve compliance with labor laws.
Details regarding the structure and implementation of the ERS remain unclear, but the announcement aligns with Trump’s campaign promises to prioritize American interests in global trade.
Article Published With The Permission of American Liberty News.
Then scrap IRS