The External Revenue Service Proposal

Trump’s proposal includes the creation of a new agency, the External Revenue Service (ERS), to oversee tariffs and foreign trade revenues. However, establishing such an agency would require congressional approval. With Republicans controlling both the House and Senate, the plan could gain legislative traction.

The initiative has raised questions about government expansion, as Trump—who has pledged to reduce federal bureaucracy—would be forming an agency to handle duties already managed by existing entities like the Commerce Department and U.S. Customs and Border Protection. The proposed External Revenue Service would focus on collecting revenue from foreign sources, distinguishing it from the current Internal Revenue Service, which handles domestic taxes.

Major Tariffs at the Core of Trump’s Economic Plan

As part of his broader economic strategy, Trump has proposed steep tariffs, including a potential 25% levy on imports from allies like Canada and Mexico and a 60% tariff on Chinese goods. These measures are designed to bolster domestic revenue and shift the tax burden away from American citizens.

However, economists warn that such tariffs would likely increase consumer prices, as businesses pass costs down to buyers. Many experts remain skeptical, arguing that tariffs are an inefficient means of generating government revenue and fostering economic growth.

In summary, while the proposal aims to reduce the tax burden on American citizens and increase national wealth through tariffs, it raises significant concerns about economic impact, feasibility, and potential effects on consumers and government programs.