President-elect Donald Trump has unveiled his latest economic initiative: the creation of an External Revenue Service (ERS) to tax foreign trade partners instead of American citizens. The announcement, shared on Trump’s Truth Social account, outlined his vision for the ERS, which will officially launch on January 20, 2025, coinciding with his second inauguration.
“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.”
The ERS will focus on collecting tariffs, duties, and revenue from international sources, effectively shifting the financial burden to foreign entities that benefit from U.S. trade. Trump emphasized that this initiative aligns with his broader strategy to prioritize American workers and businesses. “We will begin charging those that make money off of us with trade, and they will start paying, FINALLY, their fair share,” he added.
The proposal has sparked significant debate. Supporters hail it as a transformative move to alleviate domestic tax burdens and bolster economic independence. Critics, however, caution that heightened tariffs could lead to trade retaliation and higher costs for American consumers.
As Trump prepares to take office, the ERS is poised to become a centerpiece of his administration’s economic policy, signaling a major shift in how the U.S. approaches taxation and trade.