Trump Announces Plan for 'External Revenue Service' to Collect Tariff Revenue

The proposal to create a new federal agency has sparked debate over its necessity, economic impact, and potential burden on U.S. importers.

President-elect Donald Trump plans to establish an 'External Revenue Service' on January 20, 2025, to collect tariffs, duties, and revenue from foreign trade.
Critics argue the agency is redundant, as U.S. Customs and Border Protection already performs similar functions under the Department of Homeland Security.
Economists highlight that tariffs are typically paid by U.S. importers, not foreign entities, and warn of potential economic strain on American businesses and consumers.
Supporters of the plan, including former Trump officials, praise it as innovative and aimed at strengthening U.S. trade policies and revenue systems.
The proposal aligns with Trump's broader agenda to reduce reliance on income taxes and shift federal revenue generation toward tariffs, though details on implementation remain unclear.