How Trumps proposed External Revenue Service could be deployed to rake in billions from new tariffs

President Donald Trump is considering announcing the creation of the External Revenue Service, to take in more money from foreign countries for the United States government. 

The president did not announce his decision Wednesday afternoon during his Liberation Day event where announced his decision to level significant tariffs on foreign countries, although CBS News reported he was considering it, citing sources familiar with his plans. 

Trump, however, announced steep tariff rates of an additional 34 percent on China, 20 percent on the European Union, 46 percent on Vietnam, and 32 percent on Taiwan as well as sweeping tariffs on many other foreign countries. 

Its going to be a day that hopefully youre going to look back in years to come and youre going to say, You know, he was right. This has turned out to be one of the most important days in the history of our country, the president said. 

If Trump acted to create a new government agency, the External Revenue Service would do the exact opposite of the already established Internal Revenue Service (IRS), which taxes Americans.

The president previously previewed the idea on social media on January 14, prior to his inauguration. 

I am today announcing that I will create the EXTERNAL REVENUE SERVICE to collect our Tariffs, Duties, and all Revenue that come from Foreign sources, Trump wrote at the time. 

The president has argued that the United States government has relied too much on taxing Americans for revenue, specifically pointing to the much-loathed Internal Revenue Service (IRS) efforts to collect more taxes.  

U.S. President Donald Trump gestures as he delivers remarks on tariffs in the Rose Garden

U.S. President Donald Trump holds a signed executive order, on the day of his remarks on tariffs

Through soft and pathetically weak Trade agreements, the American Economy has delivered growth and prosperity to the World, while taxing ourselves. It is time for that to change, he wrote.

Currently the United States Customs and Border Protection (CBP) collects tariffs, so any new agency would have to reorganize the current system.

The IRS sits under the purview of the Treasury Department, led by former hedge fund manager Scott Bessent.

Its unclear whether Trump will tap a separate head to lead the new department.

Trump repeatedly emphasizes the amount of money the United States can collect from foreign countries on trade.

We will begin charging those that make money off of us with Trade, and they will start paying, he wrote. FINALLY, their fair share.

Trump indicated he would create the new agency on his first day as president, but it has yet to materialize. 

President Donald J Trump acknowledges the applause after concluding his remarks during a "Make America Wealthy Again" event

President Donald Trump departs after signing an executive order at an event to announce new tariffs

The president finally made good on his campaign promises on Wednesday, by announcing sweeping additional tariffs on foreign countries. 

For years, Trump has adamantly campaigned on the issue of raising tariffs on foreign goods coming into the United States, even as producers warn him away from sparking a trade war.

I am a Tariff Man, he wrote in 2018. When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so.

If Trump had his way, it is likely he would eliminate income taxes altogether.

During the campaign, Trump promised to end all kinds of taxes including taxes on tips, social security benefits, and overtime pay.

When we were a smart country, in the 1890s … this is when the country was relatively the richest it ever was. It had all tariffs. It didnt have an income tax, he said during a meeting with barbers in New York City in October.

When he was asked about the proposal during an interview with podcaster Joe Rogan, Trump indicated he was serious.

Yeah, sure. Why not? he replied when asked by Rogan about the idea.

Trump cited the 25th president of the United States William McKinleys views endorsing tariffs, calling him the tariff king who spoke beautifully of tariffs.

Around in the early 1900s, they switched over stupidly to frankly an income tax, he continued. And you know why? Because countries were putting a lot of pressure on America.