President-elect Donald Trump has unveiled plans to establish the "External Revenue Service," a new government entity aimed at collecting tariffs, duties, and revenue from foreign sources. Announced on Tuesday via his Truth Social platform, Trump outlined his vision to shift the responsibility for collecting such revenues from the U.S. Customs and Border Protection to this new agency. The initiative forms part of his broader strategy to reshape America's trade landscape.
Trump's plan includes a significant increase in tariffs, with a proposed 10% hike on imports from China and a 25% fee on products originating from Canada and Mexico. He is also contemplating declaring a national economic emergency to facilitate the implementation of these tariffs. This move marks a bold approach as Trump prepares to assume office for his second non-consecutive term in the White House on January 20, 2025.
"For far too long, we have relied on taxing our Great People using the Internal Revenue Service (IRS)," Donald Trump remarked in his announcement.
The proposed External Revenue Service is slated to commence operations on January 20, 2025, coinciding with Trump's inauguration. It is expected to centralize the collection of all foreign revenue, a task currently managed by U.S. Customs and Border Protection. While details about the structure and operation of the new agency remain sparse, Trump's spokesman Steven Cheung directed queries to Trump's Truth Social post for additional insights.
"It is time for that to change. I am today announcing that I will create the EXTERNAL REVENUE SERVICE to collect our Tariffs, Duties, and all Revenue that come from Foreign sources," Trump stated.
The announcement underscores Trump's critique of existing trade policies, which he perceives as disadvantageous to the United States.
"Through soft and pathetically weak Trade agreements, the American Economy has delivered growth and prosperity to the World, while taxing ourselves," he commented.
The introduction of the External Revenue Service signals a potential shift in U.S. trade policy under Trump's leadership. By seeking to levy higher tariffs and duties on foreign imports, Trump aims to ensure that trade partners contribute equitably 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 asserted.
While Trump's announcement has generated significant attention, it has also raised questions about its impact on international trade relations and domestic economic policy. Critics argue that increased tariffs could lead to trade tensions and higher costs for consumers.
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