President-elect Trump said Tuesday that he wants to create an “Internal Revenue Service” that would collect customs duties and other revenue from foreign countries, similar to the Internal Revenue Service (IRS), which collects taxes from Americans.
“For too long, we have relied on using the Internal Revenue Service (IRS) to tax the greats. Through soft and pathetically weak trade agreements, the American economy has taxed itself while , has brought growth and prosperity to the world,” President Trump said. society of truth.
“It's time for that to change. Today I am announcing the creation of the Foreign Revenue Service to collect duties, duties, and all foreign revenue.”
President Trump is considering increasing tariffs on products from Canada, Mexico and China, and announced the creation of a new agency. He said through an executive order on Monday, his first day in office, he would impose a 25% tariff on all Canadian and Mexican products and an additional 10% tariff on all Chinese products.
“We will start charging those who profit from us in trade and they will finally start paying their fair share. January 20, 2025 will be the Internal Revenue Service’s birthday . Let's make America great again!'' President Trump added on Tuesday.
During his 2024 election campaign, President Trump promised to impose import taxes of 10% to 20% on all foreign goods and up to 60% tariffs on Chinese goods. He doubled down on those threats after his election, threatening to impose additional tariffs on products from Canada, Mexico and China, the three largest U.S. trading partners.
Customs and Border Protection (CBP), within the Department of Homeland Security, is currently responsible for collecting customs duties.
Under the current system, CBP collects duties from U.S.-based importers of foreign products that are subject to import taxes. The importer, not the foreign country or company from which the product is exported have to pay taxes To CBP.
In his first term, President Trump imposed tariffs on steel and aluminum from countries such as Canada and Mexico, and renegotiated the North American Free Trade Agreement with terms aimed at boosting U.S. manufacturing and improving compliance with labor laws. Both countries were forced to do so.
