Trump creating 'External Revenue Service' for tariffs

financialpost.com:

President-elect Donald Trump said he would create an “External Revenue Service” tasked with collecting tariffs on foreign imports, the latest indication that the Republican aims to carry out his promises for sweeping trade levies when he retakes office.

“I will create the EXTERNAL REVENUE SERVICE to collect our Tariffs, Duties, and all Revenue that come from Foreign sources,” Trump said in a post to his Truth Social network on Tuesday.

“We will begin charging those that make money off of us with Trade, and they will start paying, FINALLY, their fair share. January 20, 2025, will be the birth date of the External Revenue Service,” he added.

The president-elect didn’t provide any details of whether he planned to pursue the creation of a new government agency, or if his proposal was largely a branding exercise for existing government functions.

Democrats immediately mocked the idea.

“Seems like a ‘concept of a plan,’ huh?” said Representative Richard Neal of Massachusetts, the top Democrat on the House tax-writing committee, referring to Trump’s vague promise in a debate last year to revamp health care.

Tariffs are currently collected by Customs and Border Protection (CBP), whose agents review paperwork, perform audits, and collect levies and penalties, with the money then deposited into the Treasury Department’s General Fund. They account for less than two per cent of federal revenue.

But the exercise underscores Trump’s desire to frame tariffs on foreign imports as a way to offset costs for his policy agenda that would otherwise be directly shouldered by taxpayers. Trump was elected on vows to levy tariffs on both allies and adversaries, casting them as tools to bring in more revenue to the US and compel companies to