Critics Raise Concerns Over Trump’s New External Revenue Service
President Donald Trump’s announcement of a new External Revenue Service (ERS) has sparked a wave of criticism from economists, lawmakers, and business leaders. The ERS, intended to collect tariffs, duties, and revenue from foreign sources, is facing skepticism over its potential impact on American consumers and businesses.
“This is clever marketing, but it doesn’t change the fact that American consumers will end up paying these higher tariffs,” wrote Heather Long, an economic analyst and columnist for The Washington Post, on social media platform X ahead of the announcement. Long noted that the United States already has the Customs and Border Protection agency tasked with collecting tariffs and duties.
Customs lawyer Richard Mojica from Miller & Chevalier expressed confusion over the ERS’s proposed function. “I don’t see how the ERS could collect tariff payments from a foreign manufacturer who is not also the U.S. importer of record,” Mojica told The New York Times.
Senator Ron Wyden of Oregon, a senior member of the Senate Finance Committee, criticized the plan, stating that it would hurt ordinary Americans while benefiting the wealthy. “No amount of silly rebranding will hide the fact that Trump is planning a multi-trillion-dollar tax hike on American families and small businesses to pay for another round of tax handouts to the rich,” he said in a statement.
Despite the backlash, President Trump maintains that the ERS will protect American workers and families. “Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens. It will be massive amounts of money pouring into our Treasury, coming from foreign sources,” Trump stated on Monday.
The administration has already begun implementing new tariffs on major trading partners. On February 1, Trump signed executive orders imposing a 25 percent tariff on imported goods from Canada and Mexico.
In response, Canadian Prime Minister Justin Trudeau warned that Canada would retaliate if the U.S. follows through with imposing tariffs. “We will defend Canada, our workers, our businesses, our economy, and our sovereignty,” Trudeau declared. “Everything is on the table.”
Reference(s):
cgtn.com
