
President-elect Donald Trump unveils plans for an “External Revenue Service” to collect tariffs and duties, signaling a major shift in U.S. trade policy.
This could be the start of winding down U.S. taxes and making foreign countries pay for access to the American market. Wow!
At a Glance
- Trump announces creation of “External Revenue Service” to collect tariffs and duties
- New agency set to launch on January 20, 2025, coinciding with Trump’s second inauguration
- Proposed tariffs include 10% increase on Chinese imports, 25% on Canadian and Mexican goods
- Economists warn of potential negative impacts on U.S. consumers and businesses
- Move aims to shift tax burden from domestic sources to international trade
Trump’s Vision for a New Revenue Collection Agency
In a truly historic move, President-elect Donald Trump has announced plans to establish an “External Revenue Service” tasked with collecting tariffs, duties, and revenue from foreign sources.
This is the biggest news on U.S. tax policy in modern history.
The new agency, set to launch on January 20, 2025 – the day of Trump’s second inauguration – aims to shift the tax burden away from domestic sources and onto international trade.
Trump’s announcement comes as part of his broader economic strategy, which includes criticisms of current trade agreements and a push for what he sees as fairer trade practices. The proposed External Revenue Service would take over responsibilities currently handled by U.S. Customs and Border Protection, potentially marking a significant reorganization of federal trade operations.
Proposed Tariff Increases and Economic Implications
Central to Trump’s plan is a series of proposed tariff increases, including a 10% hike on imports from China and 25% fees on products from Canada and Mexico. These measures are intended to generate revenue and address what Trump perceives as unfair trade practices.
“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 Trump said.
However, economists and trade experts have raised concerns about the potential impact of these tariffs on the U.S. economy. Many argue that the cost of tariffs is primarily borne by U.S. importers and consumers, rather than foreign entities.
Are you ready for your taxes to be dramatically slashed?