President Trump to Propose ‘External Revenue Service’ to Shift Tax Burden Abroad

• Trump plans to unveil an “External Revenue Service” to collect tariffs from foreign imports.
• A new $25 fee may be applied to low-cost Chinese packages, targeting platforms like Shein and Temu.
• The White House is hosting a big Rose Garden event with key lawmakers and industry workers to push the tariff agenda.

In typical Trump fashion, the president is reportedly planning to unveil something he’s calling the “External Revenue Service” — a twist on the IRS — as part of a broader effort to collect tariff revenues and reset America’s trade footing around the world.

According to sources familiar with the plans, the announcement could come Wednesday afternoon as Donald Trump preps a big Rose Garden event to showcase his next round of tariffs and foreign trade strategy.

JUST IN: 🇺🇸 President Trump is speculated to announce a new "External Revenue Service" on Wednesday 👀

— BlockNews (@blocknewsdotcom) April 2, 2025

The big idea? Use the new agency — essentially a rebranded tax collector — to scoop up cash from foreign imports, starting with a fresh swipe at Chinese e-commerce platforms like Temu and Shein.

Goodbye IRS? Not Quite. But Trump’s Talking Big.

Trump has been floating this “External Revenue Service” concept for a while now — painting it as a way to phase out the Internal Revenue Service and instead “make the outsiders pay,” as Commerce Secretary Howard Lutnick put it earlier this year on Fox News.

“The goal is simple,” Lutnick said in February. “Abolish the IRS. Let the world pay us.”

Simple in theory. In practice? Well, replacing income tax with tariffs would require a full-blown act of Congress, not to mention a massive economic rework. And let’s not forget: U.S. Customs and Border Protection already handles this stuff.

So, where this new “External” agency fits in — if it even gets off the ground — remains a bit fuzzy.

Low-Value Goods from China in the Crosshairs

One immediate change Trump is eyeing? A potential $25 fee slapped on low-value packages arriving from China — the kind of stuff Americans snap up online for cheap.

Right now, thanks to the $800 “de minimis” loophole, goods under that price tag don’t get taxed. That’s allowed foreign sellers to ship items directly to consumers without import duties — a huge leg up over U.S. retailers who do have to pay when they import in bulk.

The system’s been a goldmine for apps like Shein and Temu, but a headache for U.S. businesses.

Sources told CBS News that the White House is serious about closing that loophole. No final decision was made by early Wednesday, and White House spokespeople stayed quiet when asked for details.

Tariff Confusion Isn’t New

This isn’t the first time the administration has tried to crack down on these packages. Back in February, a wave of new tariffs went into effect on small-value shipments — but within days, the rollout hit a wall.

Ports clogged up. The U.S. Postal Service temporarily halted incoming packages from China and Taiwan. And by Feb. 7, the whole thing was partially rolled back.

Critics also raised flags over fentanyl, counterfeit products, and other illicit items slipping through via these unchecked shipments. With volume this high, screeners can’t catch everything.

Who’s Invited to the Show? Everyone, Basically.

The Rose Garden rollout is expected to be a bit of a show. Steelworkers, autoworkers, and nearly Trump’s full cabinet are set to attend, CBS News reports.

On the guest list:

• House Speaker Mike Johnson
• Majority Leader Steve Scalise
• Senate GOP leader John Thune
• Senators Bill Hagerty and Bernie Moreno

Trump’s latest tariff blitz is clearly designed to draw a sharp contrast with traditional trade norms — and, let’s be real, it doubles as a campaign moment heading into election season.

Whether the “External Revenue Service” becomes a thing or not? We’ll see. But for now, Trump’s aiming to turn foreign trade into a domestic rallying cry.