Trump is planning a ‘Foreign Revenue Service’ for the tariffs paid by US importers

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President-elect Trump on Tuesday announced plans to create a new “Foreign Revenue Service” to collect revenue from tariffs, but economists pushed back, saying US importers would bear the cost of the tariffs more than companies based overseas.

“For too long, we’ve relied on the Internal Revenue Service (IRS) to tax our elites. Through soft and woefully weak trade deals, the US economy has delivered growth and prosperity to the world, and we’re paying for it ourselves. It’s time for that to change,” Trump wrote on the Truth Social forum. wrote on

“I’m announcing today that I’m creating the Foreign Revenue Service to collect our tariffs, duties, and all revenue from imports. We’ll start charging those who get money from us with business fees. They’ll eventually start paying. January 20, 2025, will be their fair share, the birthday of the Foreign Revenue Service.”

Tariffs are taxes on imported goods, usually paid by the importer to the US Customs and Border Protection (CBP), a federal agency. That flexibility has prompted pushback from economists who say the proposed Foreign Revenue Service name represents an effort to obscure who pays the tariffs.

Trump rejected the report about the changes in the tariff plans

President-elect Trump has said he plans to create a “Foreign Revenue Service” to collect tariffs on US importers. (Bill Pugliano/Getty Images/Getty Images)

“The president-elect may try to market his high-tariff agenda as an external tax, but the messaging won’t change that high tariffs will be paid by people and businesses importing goods in the U.S.,” Erica York, vice president of taxation at the foundation, told Fox Business.

“Tariffs are not foreign revenue; they are taxes on American imports that reduce the U.S. economy and U.S. revenue. Higher tariffs create a drag on the U.S. economy and threaten to offset the benefits of tax cuts elsewhere. They should not be trusted as a primary source of tax revenue,” York said. He explained.

Trump’s Proposed Tariffs: What Consumer Products May Be Affected?

trudeau trump

President-elect Trump, who was here with Canadian Prime Minister Justin Trudeau, who recently announced his resignation, campaigned for tariffs on US trading partners. (Dan Kitwood/Getty Images) / Getty Images)

Scott Lincicom, vice president of general economics at the Cato Institute, echoed similar sentiments, telling FOX Business: “The agency’s name is more of a brand than substance — and a misleading trademark. In most cases, parties in the United States are not foreign (foreign) sources – they pay US tariffs and retain their economic status, as confirmed by several recent studies.

“So declaring tariff revenue ‘external’ is just as misleading as declaring domestic sales tax revenue ‘external’ because it applies to a foreign-made item in your local Walmart. At the end of the day, Trump can call it “foreigners pay the tariff agency,” and still It doesn’t change the fact that it’s really Americans,” Lincicome said.

Goldman Sachs: Trump Tax Cuts, Deregulation Boosts Growth Tariff can be drag.

New Orleans harbor container ship

In most cases, tariffs are paid by importers to US Customs and Border Protection at the point of entry into the country. (Photographer: Luke Charrett/Bloomberg via Getty Images/Getty Images)

In his successful campaign to return to the White House, Trump has announced plans to impose 10% or 20% tariffs across the board, as well as a 60% higher tariff on Chinese imports.

He also threatened to impose 25% tariffs on goods from Canada and Mexico that are part of the US-Mexico-Canada Agreement (USMCA) – the free trade agreement Trump first negotiated as a successor to the North American Free Trade Agreement. Trade Agreement (NAFTA).

The campaign platform included tax revenue from tariffs as a source of income to offset proposed tax cuts and spending plans.

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Trump will be inaugurated for his second term as president on Monday, January 20. His transition team has indicated that he plans to sign executive orders upon taking office, as new presidential administrations often do.

Trump’s social media post suggests that the Foreign Revenue Service will be created on Graduation dayAlthough details on whether this will be implemented by executive order and how the new agency plans to operate are unknown.

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