President-elect Donald Trump said Tuesday he hopes to create a new federal entity in charge of collecting revenue from his proposed import taxes upon his inauguration, signaling a further backing of Trump’s controversial tariffs, though Trump would likely lack the authority to make an entirely new agency.
Trump declared next Monday will be the “birth date” of the IRS counterpart as tariffs become a core ... [+]
Trump wants to create an “External Revenue Service,” he said in a post to his Truth Social platform.
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,” according to Trump, nodding to the universal tariffs at the core of his economic platform.
Next Monday—the date of his inauguration—will be the “birth date” of the External Revenue Service, Trump declared.
It is Congress, not the President, which has the power to create federal agencies, according to the Constitution, complicating Trump’s goal to immediately create the External Revenue Service, though Republicans hold a majority in the House and Senate.
The establishment of a new federal agency apparently moves against the objectives of Trump megadonor and $400 billion man Elon Musk. Musk, the co-head of the Department of Government Efficiency commission backed by Trump, said in November he hopes to cut the number of federal agencies from over 400 to 99 or less, a more than 75% reduction.
The Customs and Border Protection, a part of the Department of Homeland Security, is in charge of collecting tariffs. Trump has supported tariffs of at least 10% on imported goods, a policy designed to boost domestic manufacturing and as a foreign policy negotiation tool, though economists warn tariffs may worsen inflation as companies pass on the taxes to customers.