President-elect Donald Trump unveiled a new initiative on Tuesday, proposing the creation of a federal agency called the “External Revenue Service” (ERS) to collect revenues from foreign countries that owe money to the United States. Trump’s announcement, made on his TRUTH Social platform, outlined a vision of reducing the tax burden on American citizens by targeting foreign trade partners.
“For far too long, we have relied on taxing our Great People using the Internal Revenue Service (IRS),” Trump declared. “Through soft and pathetically weak trade agreements, the American economy has delivered growth and prosperity to the world, while taxing ourselves. It is time for that to change.”
The plan, which Trump wants to set in motion on the day of his inauguration, January 20, 2025, aims to shift the focus of revenue collection from domestic taxpayers to international trade participants. According to Trump, the ERS would be responsible for collecting tariffs, duties, and other revenues stemming from foreign trade and investments.
Shifting the burden: Trump’s vision for economic reform
Trump’s proposal reflects his long-standing critique of U.S. trade policies, which he claims have disproportionately benefited other nations at the expense of American taxpayers. By creating the ERS, Trump seeks to ensure that foreign entities pay what he describes as their “fair share” to the United States.
“We will begin charging those that make money off of us with trade,” Trump wrote, “and they will start paying, FINALLY, their fair share.”
The announcement builds on Trump’s broader “America First” agenda, which prioritizes renegotiating trade deals and imposing tariffs to bolster the U.S. economy. While specific details about the IRS’s structure and operations remain unclear, Trump’s statement signals an aggressive approach to international financial relations. The new agency is expected to focus on collecting revenues from tariffs, import duties, and penalties imposed on foreign corporations and governments.
Critics argue that the proposal could escalate trade tensions and lead to retaliatory measures from key trading partners. However, Trump and his supporters believe the move will help reduce the federal deficit and ease the financial burden on American taxpayers.
Looking Ahead: Implications of the external revenue service
If implemented, the ERS could mark a significant shift in how the U.S. generates revenue. Proponents argue that targeting foreign entities for revenue collection could alleviate the need for domestic tax increases, ultimately benefiting American families and businesses.
Trump’s announcement also raises questions about the agency’s potential impact on international trade dynamics. Experts suggest that an aggressive revenue-collection strategy could strain relationships with allies and trading partners, potentially sparking disputes in the World Trade Organization (WTO).
Despite these concerns, Trump remains steadfast in his commitment to the initiative. “January 20, 2025, will be the birth date of the External Revenue Service,” he proclaimed, ending his announcement with his signature slogan: “MAKE AMERICA GREAT AGAIN!”
As Trump prepares to assume office, the ERS proposal signals his administration’s intention to reshape U.S. fiscal policy and redefine its role in the global economy. Whether this ambitious plan will succeed in achieving its goals or face significant pushback remains to be seen.
