Trump’s New ‘IRS’ – What It Means

IRS letters with US Capitol building inside.

(TheProudRepublic.com) – President-elect Donald Trump has stirred the economic pot by proposing a new IRS agency called External Revenue Service, a strategy to secure America’s global trade financial edge.

This initiative focuses on imposing tariffs to rectify trade imbalances and bring significant revenue to support domestic interests. It is also designed to collect revenue from international tariffs and duties.

This agency will act as a counterpart to the Internal Revenue Service, improving how America handles trade income.

“The proposed entity, which would be a counterpart to the federal tax-focused Internal Revenue Service, would “collect our Tariffs, Duties, and all Revenue that come from Foreign sources,” Trump posted on his Social Truth platform.

Trump believes that regulating foreign trade more strictly will secure a greater revenue share from global markets.

While establishing a federal agency traditionally falls under congressional jurisdiction, this creates a hurdle for Trump’s plans.

Yet, given the Republican majority in Congress, passing such measures might be feasible.

Trump’s vision aligns with his tariff-centered economic platform, filling an economic void caused by weak trade deals that have historically burdened U.S. taxpayers with enriching other nations.

Moreover, this proposal aims to boost local manufacturing by placing tariffs on major trading partners.

The strategy includes tariffs, such as a steep 25% on imports from Canada and Mexico, to address issues like drug trafficking and illegal migration.

The plan also targets a 10% tariff on global imports, with a significant 60% on Chinese goods, to address trade deficits.

Customs and Border Protection (CBP) currently manages tariff collections within the Department of Homeland Security (DHS).

However, Trump might consider creating an entirely new agency to invigorate economic stimuli through foreign trade revenues.

Critics fear that heightened tariffs could lead to trade retaliation, increase consumer costs, and spark inflation, counteracting the intended economic relief.

Economists caution against Trump’s tariff-driven approach, warning of inefficiencies and the financial burden these may place on ordinary Americans.

Although boosting the economy remains his promise, opponents asserted it could merely be a tax rebranded, shifting further costs onto American families.

“No amount of silly rebranding will hide the fact that Trump is planning a multi-trillion-dollar tax hike on American families and small businesses to pay for another round of tax handouts to the rich,” Oregon Senator Ron Wyden stated.

As the Trump administration gears up, the External Revenue Service’s success will hinge on overcoming legislative hurdles and balancing international diplomacy with domestic economic growth.

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