Former Trump Assistant Secretary of Commerce Nazak Nikakhtar discusses President-elect Trump’s tariff strategy on “The Big Money Show.”
President-elect Donald Trump on Tuesday announced plans to create a new agency called the Foreign Revenue Service to collect foreign funds owed to the United States.
“For too long, we have used the Internal Revenue Service (IRS) to tax great people,” President Trump wrote on the TRUTH social.
“Through soft and pathetically weak trade agreements, the American economy has brought growth and prosperity to the world while taxing itself,” the president-elect continued. “It’s time to change that. Today I am announcing the establishment of the Foreign Revenue Service to collect duties, duties, and all foreign revenues.”
He added: “We will start charging those who benefit from us in trade and they will finally start paying their fair share. January 20, 2025 is the birth date of the Internal Revenue Service. “We will make America great again.” ! ”
Canada prepares for Trump tariffs: “There are no winners in trade wars”
President-elect Donald Trump speaks to members of the media during a press conference at the Mar-a-Lago Club in Palm Beach, Florida, on January 7, 2025. (Scott Olson/Getty Images/Getty Images)
President Trump held a press conference at his Mar-a-Lago mansion last week, vowing to impose “significant tariffs” on Mexico and Canada if they do not properly curb the flow of drugs and immigrants across the U.S. border. I promised. He vowed to usher in a “Golden Age for America,” adding that the United States would have access to natural resources “like no other.”
During his campaign, President Trump suggested imposing minimum tariffs of 10% to 20% on all imports, and over 60% on imports from China. Last month, he threatened to impose a flat 25% tariff on all imports from Canada and Mexico on his first day in office, but it is unclear how the incoming administration’s plan will materialize.
December 10, 2024: President Trump’s Treasury Secretary nominee Scott Bessent arrives in Washington, D.C., for a meeting with Sen. Mike Crapo (R-Idaho). (Anna Moneymaker/Getty Images/Getty Images)
President Trump calls on EU to buy more US oil and gas or face full tariffs
Bloomberg reported Tuesday that President Trump’s transition team is considering ways to use enforcement powers granted under the International Emergency Economic Powers Act to phase in tariff increases on a monthly basis. One option being considered is to gradually increase tariffs on trading partners by about 2% to 5% a month to offset the impact of inflation, according to reports.
Scott Bessent, Kevin Hassett and Stephen Millan are leading the development of the tariff strategy, Bloomberg reported, citing sources familiar with the matter. President Trump selected them as Secretary of the Treasury, Director of the National Economic Council, and Leader of the Council of Economic Advisers, respectively.
White House Economic Advisor Kevin Hassett speaks to reporters in front of the West Wing of the White House on May 22, 2020. President Trump nominated him for a second term as director of the National Economic Council. (Alex Wong/Getty Images/Getty Images)
Meanwhile, CBS News pointed out that there is already a federal agency that collects revenue from tariffs. Tariffs are set by the Department of Commerce and the Office of the U.S. Trade Representative, but collection and enforcement are primarily performed by U.S. Customs and Border Protection. These collections are then deposited into the United States General Fund.
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President Trump has also proposed imposing heavy tariffs on China to hold the Chinese government accountable for smuggling illegal drugs into the United States.
The president-elect also threatened that the European Union must buy more U.S. oil and gas or face “tariffs forever!”
