Set to reshape the nation’s economic strategy, President-elect Donald Trump announced on Tuesday the creation of an “External Revenue Service” (ERS) to collect tariffs, duties, and revenue from foreign sources.
Sharing his plans on TRUTH Social, Trump described the new agency as a historic shift in how America funds its government, vowing to ease the tax burden on U.S. citizens by redirecting it toward international trade partners.
“For far too long, we have relied on taxing our Great People using the Internal Revenue Service (IRS),” Trump wrote. “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.”
Trump further declared, “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. January 20, 2025, will be the birth date of the External Revenue Service. MAKE AMERICA GREAT AGAIN!”
Trump’s announcement follows his longstanding campaign promises to prioritize American interests in international trade.
During his 2024 campaign, he repeatedly championed aggressive tariffs on imports, targeting countries like China, Mexico, and Canada, which he accused of benefiting unfairly from trade with the U.S.
At a press conference at his Mar-a-Lago estate last week, Trump doubled down on this commitment, pledging “substantial tariffs” on Mexico and Canada if they fail to curb the flow of drugs and migrants across their borders.
The president-elect asserted that these measures would usher in a “golden age for America,” leveraging the nation’s unparalleled natural resources to maximize economic growth.
On the campaign trail, Trump floated plans for minimum tariffs of 10% to 20% on all imported goods and as much as 60% on imports from China. He also threatened a sweeping 25% tariff on goods from Canada and Mexico, to be imposed on his first day in office.
Although the specifics of the ERS remain unclear, Trump’s administration is reportedly studying ways to implement tariffs incrementally, using executive authority under the International Emergency Economic Powers Act.
Bloomberg reported that Trump’s economic team, including Scott Bessent, Kevin Hassett, and Stephen Miran, are spearheading the development of this strategy.
The trio has been tapped to fill key roles as Treasury Secretary, National Economic Council Director, and leader of the Council of Economic Advisers, respectively. Sources indicate they are exploring options to increase tariffs month-to-month by 2% to 5%, aiming to minimize inflation risks while asserting economic dominance.
Currently, tariffs are established by the Department of Commerce and the Office of the United States Trade Representative, with enforcement handled by U.S. Customs and Border Protection.
Funds collected through these tariffs are deposited into the General Fund of the United States. Critics have questioned how the ERS would interact with or replace existing systems, but Trump’s camp has yet to clarify the agency’s operational details.
The president-elect has not minced words when addressing foreign nations, warning that failure to comply with his vision will result in severe economic consequences. He accused China of enabling the flow of illegal drugs into the U.S. and threatened the European Union with tariffs unless they increase their imports of American oil and gas.
“We will no longer allow other countries to grow rich at our expense,” Trump proclaimed during a recent rally. His supporters have rallied behind the initiative, viewing it as a long-overdue correction to global trade imbalances.
As January 20 approaches, all eyes are on Trump and his administration to deliver on these ambitious promises. Whether the ERS will transform the nation’s economy or face significant challenges remains to be seen, but one thing is certain: Donald Trump is determined to redefine what it means to put America first.