Trump: Tariffs to be collected by “External Revenue Service”

President-elect Donald Trump on Tuesday said he will create an “External Revenue Service” to collect tariffs. His announcement, made in a post on Truth Social, lacked details but appeared to reinforce his pledge to enact sweeping tariffs on imports from other countries.

U.S. Customs and Border Protection, in the Department of Homeland Security, is currently responsible for collecting tariffs. But Trump’s post took aim at the Internal Revenue Service, which he has previously portrayed as hostile to taxpayers. 

“For far too long, we have relied on taxing our Great People using the Internal Revenue Service (IRS),” Trump posted.

“Through soft and pathetically weak Trade agreements, the American Economy has delivered growth and prosperity to the World, while taxing ourselves,” Trump wrote.

“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,” he wrote.

“We will begin charging those that make money off of us with Trade, and they will start paying, FINALLY, their fair share,” he wrote.

Trump pledged during his campaign to boost U.S. manufacturing by putting tariffs of 10% to 20% on all foreign imports, 25% on products from Mexico and Canada and up to 60% on imports from China. 

While he often frames tariffs as an expense for foreign countries, importers pay them and pass the costs to U.S. consumers, according to economists who have warned they could cause a spike in prices and inflation.

Trump has said he “can’t guarantee” the tariffs won’t raise prices for Americans, who cited the economy as their top issue in the Nov. 5 election.