On January 14, Donald Trump revealed his intention to create the External Revenue Service, a new agency designed to gather tariffs, duties, and revenue from foreign entities that benefit from trade with the United States. He criticized the nation’s dependence on domestic taxation through the Internal Revenue Service (IRS), arguing for a necessary transformation in the revenue collection model. In a post on Truth Social, Trump stated, “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.”
The president-elect announced that the External Revenue Service would officially commence operations on January 20, 2025. He asserted, “It is time for that to change. I will create the External Revenue Service to collect tariffs, duties, and all revenue from foreign sources. Those profiting from trade with us will finally start paying their fair share. January 20, 2025, will mark the birth of the ERS. Make America Great Again!” The IRS, which is responsible for domestic tax collection, functions under the jurisdiction of the Treasury Secretary, while the current responsibility for tariff collection lies with U.S. Customs and Border Protection.