Trump says he will create ‘External Revenue Service’ for tariffs

US President-elect Donald Trump says he plans to form an “External Revenue Service” for tariff collection, less than a week before he takes office.

This comes as Trump, who posted the statement on social media, has promised sweeping levies on allies and adversaries as he seeks to pressure partners into tackling issues including migration and drug trafficking.

Even before his return to the White House, Trump has vowed tariffs on major US trading partners Mexico and Canada, as well as competitor China.

He has also floated across-the-board duties on all imports, and steeper rates on Chinese goods.

On Tuesday, Trump wrote on Truth Social he would create the new body “to collect our tariffs, duties, and all revenue that come from foreign sources.”

He added, referring to the day he takes office: “January 20, 2025, will be the birth date of the External Revenue Service.”

The name is a play on the Internal Revenue Service, a bureau under the Treasury Department that administers and enforces US tax laws.

While the president-elect has said countries like China would foot the bill on tariffs, tariffs are a tax on imported goods and importers in the United States pay the duties.

The economic burden of such levies may also end up being shared with exporters and consumers.

In his online post, Trump did not provide further details on how the new department would be formed.

Trump on Tuesday also criticised the United States’ past efforts to pursue trade agreements, saying these accords were “soft and pathetically weak.”

While Washington had for decades used free-trade pacts to forge relationships around the world, it has more recently shifted away from this stance, including under outgoing President Joe Biden.

© Agence France-Presse