
President-elect Donald Trump is advancing his America First agenda by announcing the formation of the External Revenue Service (ERS). This new agency will focus on collecting revenue from foreign trade rather than continuing to tax American citizens through the Internal Revenue Service (IRS).
In his announcement on Truth Social, Trump criticized past administrations for allowing other countries to profit from weak trade agreements while American taxpayers carried the financial burden. The ERS, set to begin operations on January 20, will collect tariffs and duties from foreign businesses that benefit from access to US markets.
Trump’s plan includes imposing a 10% to 20% tariff on all foreign goods and up to a 60% tariff on Chinese imports. Additionally, he has threatened a 25% tariff on Mexico and Canada if they do not cooperate with US immigration enforcement policies.
While US Customs and Border Protection currently manages tariff collection, the ERS will centralize this function to directly support Trump’s trade initiatives. Trump allies like Steve Bannon have suggested placing the ERS under the Treasury Department to streamline its operations.
Supporters of the plan, including economist EJ Antoni, argue that focusing on tariffs instead of income taxes will ease the financial burden on American families. Antoni believes this strategy could significantly shift how the federal government collects revenue.
Trump’s creation of the ERS demonstrates his commitment to protecting American workers and industries. By holding foreign nations accountable, he is taking decisive action to strengthen the US economy and reduce reliance on domestic taxes.