Trump Proposes Creation of ‘External Revenue Service’ for Tariff Collection

President-elect Donald Trump announced on Tuesday his plan to establish an “External Revenue Service” to collect tariffs and duties from other countries, despite the existence of a federal agency already tasked with this function.

Since winning the 2024 presidential election, Trump has threatened tariffs against nations such as Canada, Mexico, and China if they fail to meet his demands on issues like illegal immigration, curbing drug trafficking into the U.S., and maintaining the U.S. dollar for trade.

“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,” Trump stated on his Truth Social platform.

“It is time for that to change,” he continued. “I am today announcing that I will create the EXTERNAL REVENUE SERVICE to collect our Tariffs, Duties, and all Revenue that come from Foreign sources. 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. MAKE AMERICA GREAT AGAIN!”

The announcement sparked a variety of reactions on social media, including from journalists who highlighted that U.S. Customs and Border Protection (CBP) already handles the collection of tariffs on foreign goods.

“Lol this already exists!” wrote Tiana Lowe Doescher of The Washington Examiner on X. “It’s called US Customs & Border Protection, and it’s the second single largest revenue raiser for the federal government — we don’t need to expand the federal govt any further!”

Heather Long, an economic columnist for The Washington Post, commented: “Trump wants to create an ‘External Revenue Service’ to collect tariffs, etc. This is clever marketing, but it doesn’t change the fact that American consumers will end up paying these higher tariffs.” She added: “(Note: US Customs and Border Protection currently collects tariffs and duties as goods enter the USA).”