Trump to Set Up ‘External Revenue Service’ to Collect Tariffs, Foreign Money

President-elect Donald Trump has revealed a plan to set up a new agency for collecting revenue from foreign sources, in an effort to shift the tax burden away from Americans.

Key Facts:

– President-elect Trump calls the new agency the External Revenue Service.
– It will collect tariffs, duties, and other revenue from foreign entities.
– The plan is set to begin on January 20, 2025, the day of Trump’s inauguration.
– Trump threatened new tariffs on Mexico and Canada if they fail to control drugs and migrants coming into the U.S.
– The administration may impose minimum tariffs of 10% to 20% on imports and up to 60% on goods from China.

The Rest of The Story:

Trump posted on his TRUTH Social platform that he has grown frustrated by what he sees as an unfair tax system in which Americans pay high taxes while foreign trading partners pay too little.

He wants to remedy this through his proposed External Revenue Service.

He insists the United States has built up the economies of other countries with “soft and pathetically weak” trade deals, and now it is time for them to “pay their fair share.”

At a recent press conference, Trump vowed to levy “substantial tariffs” on neighboring countries if they do not help control drug trafficking and migration.

Critics point out that a range of government bodies, including U.S. Customs and Border Protection, already collect import duties and deposit them into the General Fund of the United States.

However, the president-elect sees the creation of a new agency as a more direct path to enforcing his proposed trade policies.

Trump’s team is also exploring ways to gradually raise tariffs every month by 2% to 5% for certain nations, drawing on emergency legal authority.

Sources say that several officials are working on the details, including how to avoid sudden spikes in prices for American consumers.

Trump’s goal is to strike a balance between the pursuit of greater revenue from abroad and the risk of higher costs at home.

He also singled out China for allegedly sending illegal drugs into the U.S. and threatened more taxes on goods coming from there.

Additionally, he warned the European Union to buy more American oil and gas or face higher tariffs.

This approach signals a broader plan to use trade policy as a key economic tool in his incoming administration.

The Bottom Line:

Trump’s announcement suggests a major shift toward collecting more money from foreign trade.

Supporters believe it will ease the tax load on American workers, while critics worry about price increases for U.S. consumers.

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How this new approach will unfold remains to be seen, but it signals an aggressive stance on foreign trade.