Donald Trump, during his inauguration as the 47th President of the United States, announced the establishment of the External Revenue Service (ERS). This new agency is intended to collect tariffs and taxes from foreign countries rather than imposing taxes on American citizens. Trump emphasized that this initiative aims to protect American workers and families, stating, "Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens".

The ERS will be responsible for collecting tariffs, duties, and revenues from foreign nations exporting goods to the U.S. Trump projected that this would lead to "massive amounts of money pouring into our treasury".

Trump plans to overhaul the U.S. trade system to enhance protections for American industries. He indicated that this would involve imposing significant tariffs on imports, particularly targeting countries like China, Brazil, and India, which have been criticized for their trade practices.

The establishment of the ERS aligns with Trump's broader economic strategy aimed at revitalizing American manufacturing and ensuring that foreign entities contribute fairly to U.S. revenues.

The announcement has drawn criticism from Democratic lawmakers who argue that it could lead to significant tax increases on American families while benefiting wealthy individuals.

There are uncertainties surrounding how the ERS will function alongside existing agencies like Customs and Border Protection, which already handle tariff collections. Additionally, creating a new agency may contradict Trump's stated goal of reducing government size.

ANI