Trump plans to establish an ‘external revenue service’ to collect tariffs from foreign countries starting on his first day in office
He shared this plan on his Truth Social platform, saying it would collect tariffs and duties from foreign sources. But here’s the catch: creating a new federal agency isn’t a walk in the park. He’ll need Congress to back him up, and the details are still pretty fuzzy.
Trump’s been all about tariffs during his campaign. He’s even suggested a whopping 60% tariff on goods from China. Plus, he’s hinted at more tariffs on Canada and Mexico if they don’t get their act together on immigration and drug issues.
His transition team hasn’t spilled any more beans about this new revenue service yet. Meanwhile, the US Customs and Border Protection already collects a ton of revenue through trade laws. It’s unclear how Trump’s plan would mesh with what they’re doing.
Steve Bannon, a former advisor, is all in on this idea too. He thinks the US should lean more on tariffs to fund the government. He’s been vocal about charging fees for access to the US market, saying it’s too valuable to just give away.
Trump’s not worried about the potential price hikes from raising tariffs. But studies from his first term showed that tariffs did push up prices on some goods. Economists are keeping a close eye on how these new proposals might affect the economy and consumers down the line.
