In a surprise move, President-elect Trump has unveiled plans to establish a new federal agency, the External Revenue Service (ERS), tasked with collecting tariffs, duties, and other revenue streams from foreign countries. Set to launch on January 20, 2025, the ERS is part of Trump’s broader effort to shift the financial burden of funding the government from American taxpayers to foreign nations that he claims have been exploiting the U.S. economy for decades.
Trump made the announcement on Truth Social, where he declared that it was time to end the practice of relying on the Internal Revenue Service (IRS) to tax hardworking Americans. Instead, he argued that foreign countries should be held accountable for their role in benefiting from “soft and pathetically weak Trade agreements.” His post quickly gained traction, with over 66,000 likes and 18,000 “ReTruths” within hours.
“For far too long, we have relied on taxing our Great People using the Internal Revenue Service (IRS). 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. We will begin charging those that make money off of us with Trade, and they will start paying, FINALLY, their fair share,” Trump wrote.
This move is consistent with Trump’s long-standing America First trade philosophy, which emphasizes the need to protect American workers and industries from unfair trade practices. During his first term, Trump renegotiated NAFTA into the USMCA, imposed tariffs on countries like China, and cracked down on unfair trade practices. The ERS is seen as a natural extension of this philosophy, with Trump vowing to hold countries like China, India, Mexico, and Canada accountable for their trade practices.
According to reports, the ERS will enforce Trump’s proposed tariff increases, including a 10% tariff on Chinese imports and a 25% fee on products from Canada and Mexico. Critics have already begun to sound the alarm, warning of potential “trade wars” and economic instability. However, Trump’s supporters see the ERS as a long-overdue measure to hold foreign countries accountable for their actions.
In addition to the ERS, Trump also reaffirmed his plan to launch the Department of Government Efficiency, which will be co-led by Elon Musk and Vivek Ramaswamy. This department will focus on rooting out waste, fraud, and abuse in federal spending, a mission that has already attracted bipartisan support. In a surprise move, Rep. Jared Moskowitz (D-FL) has joined a congressional caucus to support the agency’s mission.
Trump’s announcement has sparked a heated debate about the role of trade in the U.S. economy and the need for greater accountability from foreign countries. While critics argue that the ERS will lead to trade wars and economic instability, Trump’s supporters see it as a necessary step to protect American workers and industries. As Trump himself put it, the ERS is part of his broader effort to “Make America Great Again” by putting America first and making foreign nations pay their fair share.
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