Trump Announces Creation of ERS on Inauguration Day to Oversee Foreign Tax Affairs | WPN World People News

On the 14th, Donald Trump, who is set to return as U.S. President on the 20th, announced on social media that on his first day in office, he will establish an **External Revenue Service (ERS)** to oversee tariffs, taxes, and income from foreign sources, in contrast to the Internal Revenue Service (IRS), which manages domestic taxation. He stated that this new agency would be responsible for foreign trade affairs, including tariffs, taxes, and revenue generated from outside the U.S., and he threatened to charge those who make money through the U.S.

However, establishing a new department requires congressional approval. While the Republican Party holds a majority in the House, Trump had previously proposed creating a government efficiency office (DOGE) to streamline the government. Now, he is proposing the creation of a new unit that would essentially duplicate functions already performed by existing agencies such as the Department of Commerce, Customs and Border Protection, which currently manage tariffs and revenue collection.

Democratic Senator Ron Wyden of Oregon dismissed this idea, stating, "No amount of rebranding can hide the fact that Trump is attempting to increase taxes on American families and small businesses to legally rob trillions of dollars to offset tax cuts for the wealthy."

Tariffs were a central focus of Trump’s economic agenda during his first campaign, and he is expected to continue using tariffs as a primary tool in trade negotiations during his second term. He has threatened to impose a 25% tariff on all goods from Canada and Mexico until those countries take effective action against drug trafficking and cross-border immigration. He also stated that he would impose a 60% tariff on Chinese goods. However, such tariff increases are expected to disrupt trade flows, raise costs, and provoke retaliatory measures from other countries against U.S. exports.