In a major policy announcement, US President-elect Donald Trump has unveiled plans to establish the External Revenue Service (ERS), a new agency designed to collect tariffs, duties, and revenues generated from foreign sources. The initiative marks a significant shift in the country’s approach to revenue generation, aiming to reduce reliance on domestic taxation.
Speaking on Truth Social, Trump criticized the current system that depends heavily on the Internal Revenue Service (IRS) for tax collection. He described it as unfair to American citizens and argued that foreign entities benefiting from trade with the United States should contribute more to the nation’s economy.
“For far too long, we have relied on taxing our Great People using the Internal Revenue Service (IRS),” Trump wrote. “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.”
Trump declared January 20, 2025, the official launch date of the ERS, coinciding with his second-term inauguration. “I am announcing today that I will create the External Revenue Service to collect our tariffs, duties, and all revenue that comes from foreign sources. Those who profit from trade with us will finally start paying their fair share. Make America great again!” he added.
The Internal Revenue Service (IRS), which operates under the Department of the Treasury, is currently responsible for administering and enforcing federal tax laws. The IRS Commissioner and Deputy Commissioner oversee its operations, ensuring compliance with the Internal Revenue Code (IRC). The creation of the ERS would mark a departure from this structure by focusing exclusively on international revenue streams.
Trump’s re-election was confirmed after the US Congress convened to certify the electoral college results. The certification process, conducted without objections, affirmed Trump’s victory over Vice President Kamala Harris in the November election, with Trump securing 312 electoral votes to Harris’s 226.
As Trump prepares to be sworn in for his second term, the establishment of the External Revenue Service signals a central theme of his administration: prioritizing American interests in global trade and reducing the tax burden on US citizens.
