Trump prepares world for US 'External Revenue Service' initiative

Source: Reuters.

The External Revenue Service will begin collecting tariff revenue on Monday, 20 January 2025, Trump said in a post on Truth Social, his social media platform.

This will follow his inauguration for a second term.

Whether an independent US Treasury division dedicated to tariff revenue will be established to implement Trump's proposal remains uncertain, given that US Customs and Border Protection (CBP) currently oversees the administration of tariff policies set by the president and Congress.

At present, importers are responsible for self-classifying and declaring the value of their goods, with CBP officials reviewing and auditing the submitted paperwork before collecting any applicable duties, penalties, and fees, as outlined by the Congressional Research Service. The collected funds are deposited into the US General Fund, managed by the Treasury Department.

While Trump’s aides are considering new tariffs on critical global imports, Bloomberg News reported this week that he is also exploring a phased approach to imposing tariffs across all sectors.

While some estimates suggest these tariffs could generate hundreds of billions of dollars in new revenue for the US, economists caution that they may also trigger inflation and drive up prices, disproportionately affecting the country's low-income consumers.

According to a White House estimate, the government collected approximately $80bn in tariffs and duties in 2023.