US President-elect Donald Trump has announced the formation of a new government agency, the External Revenue Service (ERS), which will handle the collection of tariffs, duties and other revenues from foreign sources. Revealing the plan on Truth Social, he said that it will start from January 20, the day he will assume office for the second term.
The purpose of ERS is to shift the financial burden of trade from American taxpayers to foreign countries.
Trump criticized previous trade deals, calling them “soft and weak” and arguing that they were focused on global prosperity at the expense of the US economy. “We will start charging those who profit from us through trade, and they will eventually pay their fair share,” he commented.
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.…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) January 14, 2025
It is unclear whether this new agency will replace existing systems used by US Customs and Border Protection to collect tariffs and fees, or whether it will take over the IRS’s role in collecting taxes on foreign corporate and individual income. . Additionally, the potential creation of more government bureaucracy raises questions, especially in light of Trump’s initiatives to streamline government operations and reduce spending under the leadership of Elon Musk and Vivek Ramaswamy.
