Trump Proposes Creation of 'External Revenue Service' for Foreign Tariffs

President-elect Trump announces plans to establish a new agency to collect tariffs and foreign revenue, pledging significant import taxes on Canada, Mexico, and China.

President-elect Donald Trump unveiled plans to create an 'External Revenue Service' (ERS) to oversee the collection of tariffs and revenue from foreign sources.
Trump criticized existing trade agreements and the reliance on income taxes, positioning the ERS as a counterpart to the Internal Revenue Service (IRS).
He pledged to impose a 25% tariff on imports from Canada and Mexico and an additional 10% tariff on Chinese goods through an executive order on his first day in office.
Economists warn that these tariffs could lead to higher consumer prices and exacerbate inflation in the U.S. economy.
It remains unclear how the ERS would operate, as the U.S. Customs and Border Protection currently manages tariff collection under Treasury Department regulations.