President-elect Donald Trump announced plans on Tuesday to establish a new agency, the Foreign Revenue Service, to collect tariffs from other nations, reports VOA.
“We will begin imposing tariffs on those who benefit from trade with our country—they will start paying,” Trump declared on his social media platform, Truth Social. He compared the new agency to the existing federal tax collection agency, signaling a shift in trade policy.
The creation of a new agency requires Congressional approval. With Republicans holding a majority in both the House and Senate, Trump’s proposal faces a potentially favorable legislative pathway.
A New Approach to Tariff Collection
The proposed agency would handle duties currently managed by existing entities, including the Department of Commerce, Customs and Border Protection, which collect tariffs and revenues from international trade.
As part of his broader “Save America” agenda, Trump aims to reduce federal government size and streamline operations. To spearhead this effort, he has appointed billionaire Elon Musk and entrepreneur Vivek Ramaswamy to lead the Government Efficiency Department, a private organization tasked with identifying redundancies, downsizing federal employees, and eliminating regulatory programs.
Aggressive Tariff Plans
Trump’s proposal includes tariff hikes of up to 25% on goods from allies like Canada and Mexico, and up to 60% on imports from China. These measures are central to his economic strategy as he prepares to begin his second term in the White House.
Economists, however, have raised concerns. They argue that consumers will ultimately bear the costs of these tariffs, which are often seen as an inefficient method for generating revenue and boosting prosperity.
Political Reactions
The proposal has drawn immediate criticism from Democratic lawmakers. Senator Ron Wyden, a member of the Senate Finance Committee, accused Trump of planning to increase taxes on American families and small businesses to fund tax cuts for the wealthy.
“No bizarre idea can hide the fact that Mr. Trump is proposing a multi-trillion-dollar tax hike on American families and small businesses,” Wyden stated.
As debates around trade policies intensify, Trump’s plan is poised to shape the discourse on tariffs and economic strategy in the coming months.
