Trump’s new agency aims to collect tariffs and foreign revenue, shifting focus from the IRS
Washington, DC: So, Trump just announced he’s setting up this new External Revenue Service. It’s supposed to collect all the money we get from foreign sources, like tariffs. He’s pretty fired up about it.
He took to Truth Social to say that for too long, Americans have been taxed heavily while foreign countries have benefited from weak trade deals. He believes it’s time to change that.
According to him, the ERS will start on January 20 and will make sure that foreign businesses pay their fair share. He’s even hinted at raising tariffs on countries that don’t play by his rules, especially targeting Mexico and Canada.
Trump’s also talking about some hefty tariffs—like 10% to 20% on foreign goods and up to 60% on stuff from China. He’s really pushing for a big shift in how we handle taxes and tariffs.
Right now, the IRS handles tax collection, but Trump thinks this new agency will take over tariff collection, which is currently under Customs and Border Protection. It’s a big change, and he’ll need Congress to back him up.
Some folks are skeptical, though. Experts are questioning how this new agency would even work since the government already collects duties from importers. They think it might be better to just improve the IRS instead.
As of now, Trump’s team hasn’t given any details on how this new agency will function. It’ll be interesting to see how this all plays out.
