Trump's External Revenue Service Plan Shakes Up Global Trade

President-elect Donald Trump plans to establish the External Revenue Service to collect tariffs and revenues from foreign trade. He aims to levy significant tariffs on major U.S. trading partners, potentially altering trade dynamics. The initiative is set to begin with his second inauguration term on January 20.

In a significant move poised to reshape international trade dynamics, U.S. President-elect Donald Trump announced the creation of a new agency termed the External Revenue Service. The proposed department, aimed at collecting tariffs and revenues from international trade, is expected to be established once Trump assumes office for his second term on January 20.

In a post on Truth Social, Trump criticized existing trade agreements as 'soft and pathetically weak,' arguing that they have unfairly benefited the global economy at the expense of the United States. He pledged to introduce substantial tariffs, including a 25% levy on imports from Canada and Mexico, to compel them to address drug trafficking and migration issues across the borders.

Furthermore, Trump plans to implement a global import tariff of 10% and impose a hefty 60% duty on Chinese goods, measures seen by trade experts as disruptive to established trade flows. The Trump transition team has yet to provide further details on the operational structure and implications of this new agency.

(With inputs from agencies.)