President-elect Donald Trump on Tuesday announced that he will form another government agency to implement his plan to introduce tariffs on various nations to revive the United States’ manufacturing industry by making it more expensive to purchase products from foreign countries.
The president-elect made the announcement in a post on Truth Social in which he touted the new External Revenue Service as a means to give America an edge in foreign trade negotiations.
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. It is time for that to change. I am today announcing that I will create the EXTERNAL REVENUE SERVICE to collect our Tariffs, Duties, and all Revenue that come from Foreign sources. We will begin charging those that make money off of us with Trade, and they will start paying, FINALLY, their fair share. January 20, 2025, will be the birth date of the External Revenue Service. MAKE AMERICA GREAT AGAIN!
Imposing tariffs on other nations was one of Trump’s primary planks on the campaign trail. He has proposed imposing a broad 10 to 20 percent tax on all imports coming into the United States. There are indications that Trump seeks to use tariffs, or the threat of tariffs, to give him an edge while dealing with nations like China, according to CNN.
Among those advising Trump on economic issues before he makes critical appointments, a clear strategy has emerged: Link the increased China tariffs to tax reform negotiations expected to reach a head in 2025.
“The way that President Trump looks at tariffs are not in isolation. They are a fundamental and core part of his broader economic strategy, which also includes tax cuts, deregulation, energy diversity,” says Kelly Ann Shaw, a former Trump official who is now a partner at law firm Hogan Lovells.
Trump also indicated that Canada and Mexico would face tariffs and has threatened to slap a 25 percent tax on these nations until they address the problems with drugs being smuggled over the border and illegal immigrants trying to enter the country, Reuters reported.
The leaders of both nations have balked at the idea and have pleaded with the president-elect to reconsider his position on the matter.
Trump has proposed tariffs as a way to rejuvenate manufacturing and other industries in America. This would help to increase jobs in the U.S., reduce trade deficits, while also stimulating the economy as Americans continue dealing with heightened inflation.
However, critics argue that tariffs would only increase prices for American consumers who are already struggling to pay for groceries, gas, and other necessities.
A reminder that tariffs are paid by Americans, not foreigners.
— Chase Oliver (@ChaseForLiberty) January 14, 2025
It's a tax on American businesses that hire American workers and will lead to less trade, including exporting American products to foreign markets. https://t.co/tTWKwY0J4X
Nevertheless, some argue that tariffs will reduce dependency on foreign nations for products like milk, lumber, automobiles, and other goods.
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