Former Trump Deputy Commerce Secretary Nazak Nikakhtar details President-elect Trump’s tariff strategy on “The Big Money Show.”
President-elect Donald Trump announced plans Tuesday to create a new agency called the External Revenue Service to collect money from foreign countries owed to the United States.
“For too long, we have relied on taxing our great people using the Internal Revenue Service (IRS),” Trump wrote on TRUTH Social.
“Through loose and pathetically weak trade deals, the American economy has brought growth and prosperity to the world, while taxing us ourselves,” the president-elect continued. “It is time for that to change. I am announcing today that I will create the EXTERNAL REVENUE DEPARTMENT to collect our tariffs, duties and all revenues from foreign sources.”
He added: “We will start charging those who make money from trading, and they will start paying, FINALLY, their fair share. January 20, 2025 will be the date of birth of the External Revenue Service. !”
CANADA PREPARES TRUMP’S RESPONSE ON TARIFFS: “IN A TRADE WAR, THERE ARE NO WINNERS”
President-elect Donald Trump speaks to the media during a press conference at the Mar-a-Lago Club January 7, 2025 in Palm Beach, Florida. (Scott Olson/Getty Images/Getty Images)
At a news conference at his Mar-a-Lago estate last week, Trump vowed to impose “substantial tariffs.” against Mexico and Canada if they do not adequately curb the flow of drugs and migrants across their borders with the United States. The president-elect pledged to usher in “a golden age for America,” adding that the United States has access to natural resources “that no one else has.” others have done it.”
During the election campaign, Trump suggested imposing minimum tariffs of 10 to 20 percent on all imported products, and 60 percent or more on all imported products. imports from China. Last month, he threatened to impose a blanket 25% tariff on all imports from Canada and Mexico, starting on his first day in office, but it is unclear how the plans new administration will come to fruition.
Trump’s nominee for Treasury Secretary, Scott Bessent, arrives for a meeting with Sen. Mike Crapo, R-Idaho, December 10, 2024, in Washington, DC. (Anna Moneymaker/Getty Images/Getty Images)
Trump calls on European Union to buy more American-made oil and gas or face tariffs all the way
Bloomberg reported On Tuesday, Trump’s transition team was studying how to gradually increase tariffs month by month using executive authority granted under the International Emergency Economic Powers Act. One option that has reportedly been considered would be to gradually increase customs duties by around 2-5% per month on trading partners in a bid to offset possible fallout from inflation.
Scott Bessent, Kevin Hassett and Stephen Miran are leading the development of the pricing strategy, Bloomberg reported, citing sources familiar with the matter. Trump tapped them to serve as Treasury secretary, director of the National Economic Council and head of the Council of Economic Advisers, respectively.
White House economic adviser Kevin Hassett speaks to reporters outside the West Wing of the White House on May 22, 2020. Trump appointed him director of the National Economic Council during his second term. (Alex Wong/Getty Images/Getty Images)
CBS Newsmeanwhile, noted that there are already federal agencies that collect fare revenue. Tariffs are set by the Department of Commerce and the Office of the United States Trade Representative, but collection and enforcement is primarily handled by U.S. Customs and Border Protection. These collections are then deposited into the United States General Fund.
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Trump also proposed high tariffs against China to hold Beijing responsible for alleged shipments of illegal drugs smuggled into the United States.
The president-elect also threatened that the European Union must buy more American oil and gas or be subject to “TARIFFS all the way!” »
