Trump's 'External Revenue Service' will collect from importers, not 'foreign sources'
Published On Jan 16, 2025, 6:00 AM
Donald Trump has announced plans to create a new agency called the 'External Revenue Service' aimed at collecting tariffs from U.S. importers, rather than foreign entities. Economists are critical of this proposal, stating that the burden of tariffs ultimately falls on American importers and consumers, not on foreign sources. Experts suggest that the name change may serve more as a marketing tactic rather than a genuine shift in economic policy. This could potentially lead to increased costs for American businesses and consumers due to higher tariffs.
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The creation of the External Revenue Service may lead to higher tariff rates, particularly targeting goods from countries like China. This could increase operational costs for companies reliant on imports, potentially squeezing margins and affecting stock prices negatively. Overall economic sentiment may also suffer due to increased trade tensions, which could further impact stock markets.
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