President-elect Donald Trump announced his intention to create a new agency, the External Revenue Service, to collect tariffs and other revenues from foreign countries. He shared his plan on Truth Social, comparing it to the Internal Revenue Service, which deals with domestic taxes. To make this happen, Congress would need to approve a new act.

Trump's plan aims to make foreign countries pay for the trade benefits they receive from the US. However, some economists are skeptical of this approach, arguing that tariffs often end up raising prices for consumers. The duties and revenues currently collected by existing agencies like the Commerce Department and Customs and Border Patrol might be transferred to this new entity.

For his "Save America" agenda, Trump has chosen two business leaders, Elon Musk and Vivek Ramaswamy, to head the Department of Government Efficiency (DOGE). Their mission is to streamline the federal government by reducing its size, cutting programs, and simplifying regulations. But the move to create a new agency seems contradictory to this goal.

Trump's economic plan includes steep tariffs, such as a 25% levy on goods from allies like Canada and Mexico, and a 60% tariff on goods from China. These tariffs are a major part of his economic strategy as he prepares for his second term. Nevertheless, critics argue that tariffs could lead to higher costs for American families and small businesses.

Democrats have been swift to criticize the External Revenue Service plan. Senator Ron Wyden from Oregon, a top Democrat on the Senate Finance Committee, described the plan as a "multi-trillion-dollar tax hike" that would primarily benefit the wealthy.

Trump's New Tariff Plan: A Rebranded IRS for Global Fees

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