Trump will create the External Revenue Service to collect taxes, foreign currency
Former Trump Assistant Commerce Secretary Nazak Nikakhtar breaks down the President-elect’s tax strategy on ‘The Big Money Show.’
President Donald Trump announced on Tuesday a plan to establish a new agency called the “External Revenue Service” to collect money from foreign countries owed to the United States.
“For too long, we have relied on taxing our big people through the Internal Revenue Service (IRS),” Trump wrote on TRUTH Social.
“Through soft and woefully weak trade agreements, the American economy has brought growth and prosperity to the world, while we tax ourselves,” the president-elect continued. “It is time for that to change. Today I am announcing that I will create a FOREIGN MONEY SERVICE to collect our Taxes, Duties, and all Income from foreign sources.”
He added: “We’re going to start charging those who make money with us through Trade, and they’re going to start paying, FINALLY, their fair share. January 20, 2025, will be the birthday of the External Revenue Service. MAKE AMERICA GREAT AGAIN. !”
CANADA READIES TRUMP TAX RESPONSE: ‘IN THE TRADE WAR, THERE ARE NO WINNERS’
President-elect Donald Trump speaks to members of the media during a press conference at the Mar-a-Lago Club on Jan. 7, 2025, Palm Beach, Florida. (Photos by Scott Olson/Getty Images)
At a press conference at his Mar-a-Lago estate last week, Trump promised to impose “massive tariffs” against Mexico and Canada if they do not sufficiently stop the flow of drugs and migrants crossing their borders with the US President-elect. he vowed to usher in a “golden age for America,” adding that the United States has access to natural resources that “no one else has.”
On the campaign trail, Trump had proposed tariffs ranging from 10% to 20% on all imports, and 60% or more on imports from China. Last month, he threatened to impose a 25% tariff on all goods from Canada and Mexico, starting on his first day in office, but it is unclear how the incoming administration’s plans will materialize.
Trump’s nominee for Treasury Secretary Scott Bessent arrives for a meeting with Sen. Mike Crapo, R-Idaho, on Dec. 10, 2024, Washington, DC. (Photos by Anna Moneymaker/Getty Images)
TRUMP TELLS EU TO BUY AMERICAN OIL AND GAS OR ‘FACE’ CHARGES ANYWAY.
Bloomberg reported on Tuesday that Trump’s transition team was studying how to gradually raise prices each month by using the higher authority granted under the International Emergency Economic Powers Act. Another option reportedly being considered is to gradually raise prices by about 2% to 5% per month for trading partners with the aim of reducing any fall in inflation.
Scott Bessent, Kevin Hassett and Stephen Miran are leading the development of the tax strategy, Bloomberg reported, citing sources familiar with the matter. Trump tapped them to be Secretary of the Treasury, director of the National Economic Council, and leader of the Council of Economic Advisers, respectively.
White House economic adviser Kevin Hassett speaks to reporters in front of the West Wing of the White House on May 22, 2020. Trump appointed him as director of the National Economic Council for his second term. (Photos by Alex Wong / Getty Images)
CBS News, on the other hand, noted that federal agencies that collect money from the costs already exist. Tariffs are established by the Department of Commerce and the Office of the United States Trade Representative, but collection and enforcement is primarily done by US Customs and Border Protection. Those collections are then deposited into the General Fund of the United States.
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Trump has also proposed higher tariffs against China to punish Beijing for allegedly sending illegal drugs smuggled into the United States.
The president-elect also threatened that the European Union must buy more or less American oil and gas with “TARIFFS all the way!”
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