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President-elect Donald Trump has announced plans to establish an “External Revenue Service” (ERS) to collect tariffs and revenue from foreign countries. The move is part of Trump’s broader effort to overhaul U.S. trade policies and reduce reliance on domestic taxation.
“For too long, we’ve taxed our own people through the Internal Revenue Service while weak trade agreements have benefited the world at our expense,” Trump stated on Truth Social Tuesday.
“It’s time for change. The External Revenue Service will collect tariffs, duties, and revenues from foreign sources.”
Trump outlined his intention to impose significant tariffs on goods from Canada, Mexico, and China.
Effective January 20, 2025, he plans to implement tariffs of 25 percent on all Canadian and Mexican goods and an additional 10 percent on Chinese imports through an executive order. He framed the ERS as a step toward ensuring fairness in trade.
“Those profiting off our economy will finally pay their fair share,” Trump declared, calling the ERS’s launch a pivotal moment in his mission to “Make America Great Again.”
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During his 2024 campaign, Trump pledged to impose import taxes of 10 to 20 percent on all foreign goods, with tariffs of up to 60 percent on Chinese products.
Following his election, he intensified these threats, targeting the U.S.’s largest trading partners: Canada, Mexico, and China.
Currently, tariff collection is managed by Customs and Border Protection (CBP), a division of the Department of Homeland Security. Under this system, U.S.-based importers pay tariffs on foreign goods. Trump’s proposal aims to restructure this process by directing revenue collection toward the new ERS.
In his first term, Trump imposed tariffs on steel and aluminum imports, including from Canada and Mexico, leading to renegotiations of the North American Free Trade Agreement (NAFTA). The updated agreement sought to bolster U.S. manufacturing and improve labor law compliance.
Trump’s latest plan signals a continuation of his aggressive trade strategy, reflecting his vision of shifting economic burdens onto foreign entities while prioritizing American industry and workers.
