Trump Plans New Agency to Collect Tariff Money

Donald Trump has announced plans to create a new agency called the "External Revenue Service" to manage tariffs and duties from foreign sources. He shared this idea on his social media platform, stating that it would start operating on his inauguration day, January 20, 2025. This agency seems to be inspired by the Internal Revenue Service (IRS), which handles domestic taxes. Trump believes the current system relies too heavily on taxing Americans, and wants to shift more focus to taxing imports.His former adviser, Steve Bannon, suggested this idea earlier, emphasizing that tariffs used to be a major revenue source. The US Customs and Border Protection currently handles import tariffs, but Trump's plan aims to change that. This new agency would be under the Treasury Department, reducing the workload on the IRS. Trump has threatened tariffs on imports from Canada, Mexico, and China, and even considered taxing all foreign goods, despite warnings about potential inflation.