Trump Proposes Creation of External Revenue Service for New Import Tariffs

President-elect Donald Trump plans to establish a new agency, the External Revenue Service, to collect tariffs and duties from foreign entities, aiming to boost revenue through revised import tariffs. The proposal, controversial among economists, is criticized as a tax increase on American families.

In a new announcement, President-elect Donald Trump unveiled plans to launch a federal agency dubbed the External Revenue Service, envisioned to gather tariffs, duties, and foreign revenue. This move comes as Trump prepares to initiate new import tariffs upon his inauguration.

Trump emphasized in a social media post that the creation of this agency is aimed at shifting the tax burden from Americans to foreign entities benefitting from U.S. trade. However, he did not clarify if this agency would replace existing revenue collection structures or would add new layers of bureaucracy, contrasting with his aim for government efficiency.

Despite Trump's confident assertions, economists argue that the proposed tariff system might not equate to the existing income tax revenue, tendering potential adverse economic impacts. The plan drew sharp criticism from Senator Ron Wyden, who framed it as a significant tax hike on American families while questioning its financial viability.

(With inputs from agencies.)