US President-elect Donald Trump has announced plans to establish a new body named the External Revenue Service (ERS), which will focus on collecting tariffs, duties, and all revenues derived from foreign sources. This announcement comes as part of his broader strategy to strengthen America’s global trade position and reduce reliance on domestic taxation.
In his statement, Trump sharply criticised the current system where the US relies heavily on domestic taxes enforced through the Internal Revenue Service (IRS). He emphasised the need for foreign entities benefiting from trade with the US to contribute their fair share to the nation’s economy.
Key Points:
- Trump Criticizes Current Tax System: The former president voiced dissatisfaction with the existing reliance on the IRS for domestic revenue collection, calling it “soft and weak.”
- Establishment of the External Revenue Service: Trump revealed that the new agency will focus on collecting tariffs, duties, and revenues generated from foreign trade.
- January 20, 2025: The External Revenue Service will be officially launched on this date, marking a new chapter in Trump’s economic strategy.
Trump further elaborated on his decision via Truth Social, stating:
“For far too long, we have relied on taxing our Great People using the Internal Revenue Service (IRS). 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.”
The External Revenue Service
The External Revenue Service will serve as a dedicated body for overseeing international trade finances. Trump’s administration plans to begin collecting fees from foreign trade, ensuring that entities benefiting from US trade relationships will contribute to the national tax system.
“This is a critical step to ensure fairness in how trade with foreign countries affects our economy. We will no longer carry the burden alone. Those who make money off our great country will finally pay their fair share,” Trump added.
January 20, 2025: A New Era Begins
The formal launch of the External Revenue Service coincides with Trump’s inauguration on January 20, marking the start of his second term as President. This date also signifies a turning point in US trade policies, aligning with Trump’s “Make America Great Again” agenda.
Trump’s Critique of Trade Agreements and Taxation
In his statements, Trump underscored the shortcomings of past trade agreements, calling them weak and unbalanced. According to him, these agreements have allowed foreign entities to profit from US markets without contributing adequately to the US economy through taxes and tariffs.
“We need fair trade, and the External Revenue Service will ensure that all foreign entities involved in business with the US pay their due share,” Trump emphasized.
Table of Contents:
- Trump’s Announcement of the External Revenue Service
- A New Body for Foreign Revenue Collection
- Criticism of the IRS and Domestic Tax Reliance
- Trump’s View on Current Tax Policies
- Details of the External Revenue Service
- Focus on Tariffs, Duties, and Foreign Revenues
- Launch Date: January 20, 2025
- Establishing a New Economic Era Under Trump’s Leadership
- Impact on US Trade Policies
- Trump’s Shift Toward Aggressive Foreign Revenue Collection
- The Role of the IRS in Domestic Taxation
- IRS Structure and Current Responsibilities
By focusing on foreign revenue collection, the External Revenue Service aims to reduce America’s tax burden and strengthen its economic standing on the global stage. Trump’s shift in policy underscores his commitment to reshaping US trade practices and ensuring that international stakeholders contribute to the country’s economic prosperity.
