Washington: Incoming U.S. President Donald Trump announced plans on Tuesday to establish a new governmental agency dedicated to collecting tariffs, as global allies and trading partners attempt to discern the implications of his proposed tariffs on foreign imports.
According to Yonhap News Agency, Trump revealed the creation of the External Revenue Service through a social media post. He argued that the establishment of this new body would ensure that America's trading partners contribute "their fair share" to the U.S. economy. Trump criticized current trade agreements for relying heavily on domestic taxation via the Internal Revenue Service, suggesting that they have disproportionately benefited the global economy at the expense of American taxpayers.
In his announcement on Truth Social, Trump stated, "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 emphasized the need to charge other countries benefiting from trade with the U.S., asserting that they will begin to pay "FINALLY, their fair share."
Trump's campaign heavily featured a promise to implement sweeping tariffs ranging from 10 to 20 percent on all imports, with specific threats of tariffs up to 60 percent on Chinese goods. These proposals align with his America First agenda, which has been criticized by some as being indicative of isolationist and protectionist policies.