Trump Proposes New External Revenue Service

President-elect Donald Trump has announced the creation of a new agency called the External Revenue Service, aimed at collecting tariffs and duties from foreign sources. In a social media post, Trump criticized the reliance on the Internal Revenue Service (IRS) for domestic taxation, arguing that the U.S. has been too lenient in trade agreements that benefit foreign economies. He proposed implementing tariffs ranging from 10% to 20% on imports, with higher rates on goods from countries like China, Canada, and Mexico. The External Revenue Service is expected to begin operations on January 20, 2025, coinciding with Trump's inauguration. Critics point out that the U.S. already has a system for collecting tariffs, managed by Customs and Border Protection, raising questions about the necessity of this new agency. The announcement is likely to influence upcoming Senate confirmation hearings for Trump's economic cabinet appointments, as lawmakers seek clarity on his economic strategies.