Donald Trump's proposal to establish an "External Revenue Service" (ERS) is centered around his economic policy strategy, particularly his focus on tariffs and duties as a means of generating revenue. Here's why he advocates for this:
Trade Policy Enforcement: By establishing a new agency dedicated to this task, Trump aims to emphasize and possibly streamline the collection of duties and tariffs, which are currently managed by various agencies such as U.S. Customs and Border Protection (CBP). His rhetoric suggests dissatisfaction with existing trade agreements and a desire to enforce what he perceives as fairer trade practices, where countries "that make money off of us with Trade" are charged more directly for access to the U.S. market. https://www.cbsnews.com/news/external-revenue-service-trump-tariffs/ https://time.com/7206986/trump-external-revenue-service-tariffs-taxes/
Symbolic and Political Messaging: The creation of an ERS also serves a symbolic purpose, paralleling the Internal Revenue Service (IRS) but with a focus on external revenue. This could be seen as part of Trump's broader political narrative of America First, emphasizing that foreign entities should contribute more financially to the U.S. economy. Critics, however, have pointed out that this might be more of a rebranding or marketing tactic rather than a substantive change in policy execution, given that the functions are already performed by existing governmental bodies. https://www.theguardian.com/us-news/2025/jan/14/trump-external-revenue-service-tariff
In summary, Trump's push for an External Revenue Service is part of his broader economic strategy focusing on trade policy, revenue generation through tariffs, and a symbolic gesture towards reducing the tax burden on American citizens while asserting that foreign countries should pay their "fair share." However, the proposal has met with considerable skepticism regarding its necessity, effectiveness, and actual impact on U.S. economic policy.