US President Donald Trump's newly announced External Revenue Service (ERS) has sparked significant backlash from critics who question its viability and potential impact on American businesses and consumers.
The ERS is intended to collect tariffs, duties, and revenue from foreign sources, with Trump asserting that it will enrich the US by directing funds into the Treasury. However, many argue that this move will instead lead to higher taxes for American citizens.
Heather Long, an economic analyst and columnist for The Washington Post, voiced her concerns on social media platform X, stating, \"This is clever marketing, but it doesn't change the fact that American consumers will end up paying these higher tariffs.\" Long pointed out that the US already has the Customs and Border Protection department fulfilling similar functions.
Richard Mojica, a customs lawyer at Miller & Chevalier, added to the confusion by highlighting the ambiguity of the ERS's role. \"I don't see how the E.R.S. could collect tariff payments from a foreign manufacturer who is not also the US importer of record,\" Mojica told The New York Times.
Democratic Senator Ron Wyden of Oregon, a senior member of the Senate Finance Committee, criticized Trump's tax plans, claiming they will hurt ordinary Americans while benefiting the wealthy. He stated, \"No amount of silly rebranding will hide the fact that Trump is planning a multi-trillion-dollar tax hike on American families and small businesses to pay for another round of tax handouts to the rich.\"
In defense of his administration's actions, President Trump stated that the ERS would oversee an overhaul of the trade system to protect American workers and families. He emphasized, \"Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens … It will be massive amounts of money pouring into our Treasury, coming from foreign sources.\"
Following his inauguration, the US has already taken steps to target its major trading partners with new tariffs. On February 1, Trump signed several executive orders, including a 25 percent tariff on imported goods from Canada and Mexico.
The international response was swift. On Tuesday, Canada's Prime Minister Justin Trudeau announced that Canada would respond if tariffs were imposed, declaring, \"We will defend Canada, our workers, our businesses, our economy and our sovereignty.\" Trudeau added that \"everything is on the table\" to protect Canadian interests.
Reference(s):
cgtn.com
