Jan 14, 2025 - Economy

Trump promises an "External Revenue Service" to collect tariffs

Ben Berkowitz

A truck entering the United States, passing under a "Bridge to USA" sign. — A truck prepares to cross the U.S. border. Photo: Brett Gundlock/Bloomberg via Getty Images

President-elect Trump on Tuesday promised to create an "External Revenue Service" to oversee tariffs and other potential foreign revenue.

Why it matters: It's yet another sign Trump is serious about his promised widespread tariff program, despite recent reports it might be pulled back.

Driving the news: In a Truth Social post, Trump blasted the country's existing trade agreements and its reliance on income taxes for revenue.

"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," he posted.
He said Jan. 20, his inauguration day, would be the "birth date" of the ERS.

Between the lines: Customs and Border Protection currently collects tariffs at points of entry. It's unclear if Trump intends to create a new government entity to replace CBP.

The Trump transition team did not immediately return requests for comment.

The intrigue: Though Trump insists foreign countries pay when the U.S. levies tariffs, in fact importers pay the tariffs when they bring goods in.

Economists fear massive, negative market reactions if Trump follows through with threats to impose broad, heavy tariffs on U.S. trading partners.

Go deeper: Trump's Day One tariff options carry huge economic, legal risks

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Trump promises an "External Revenue Service" to collect tariffs

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