Washington, D.C. – President-elect Donald Trump has unveiled plans to establish a new federal agency called the “External Revenue Service” (ERS) to recover financial dues from foreign nations and enforce new trade policies. The agency will officially launch on January 20, 2025, marking a bold shift in the U.S. economic strategy.
“For too long, we relied on the Internal Revenue Service (IRS) to tax our own people. It’s time we collect what the world owes us,” Trump announced via his social media platform, Truth Social. He criticized weak trade agreements for allowing other nations to thrive at the expense of the American economy.
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Tariffs and Trade Enforcement
Trump pledged that the U.S. will start collecting dues from international trade partners who, in his words, have benefited without contributing their fair share. “They will start paying, and America will start winning,” he asserted. He further warned Mexico and Canada of “significant tariffs” if they do not take stronger measures to control drug trafficking and illegal migration. “We’re entering a Golden Age for America,” Trump promised, emphasizing that the nation’s vast natural resources would secure its economic independence.
Warning to Mexico & Canada
He also threatened significant tariffs on Mexico and Canada if they fail to curb the flow of drugs and immigrants into the U.S. Trump proposed minimum tariffs of 10% to 20% on all imported goods and up to 60% on imports from China. He also suggested a 25% tariff on all imports from Canada and Mexico, effective from his first day in office. The transition team is studying ways to gradually increase tariffs under the International Emergency Economic Powers Act. The strategy is being led by Scott Bessent, Kevin Hassett, and Stephen Miran. Federal agencies already exist to collect revenue from tariffs, primarily managed by U.S. Customs and Border Protection. Trump also proposed heavy tariffs on China for transporting illegal drugs into the U.S. and urged the European Union to buy more American oil and gas.
Proposed Tariffs
During his campaign, Trump suggested:
- 10% to 20% tariffs on imported goods
- 60% tariffs on Chinese imports
- A blanket 25% tariff on goods from Mexico and Canada
Bloomberg reported that Trump’s team is studying the possibility of gradually increasing tariffs monthly by 2% to 5% under the International Emergency Economic Powers Act to counter inflation risks.
Federal Tariff System in Place
Currently, the Department of Commerce and U.S. Customs and Border Protection handle tariff enforcement. However, Trump aims to centralize and strengthen this effort through the new ERS agency.
He also proposed imposing tariffs on China to hold the country accountable for drug trafficking violations. Trump demanded the European Union increase its purchase of American oil and gas, warning: “Tariffs are coming in every direction!”
This decisive approach signals a shift in America’s trade policies, aiming for stronger economic growth and global accountability.
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