Former US President Donald Trump’s proposal to create an External Revenue Service (ERS) — aimed at collecting tariffs from foreign sources — is facing fierce criticism from economists and lawmakers who warn it could backfire on American households and businesses. 💸
Announced this week, the ERS would shift the responsibility of tariff collection to a new agency, with Trump claiming it would generate \"massive amounts of money\" from overseas to fund domestic priorities. But critics call it a rebranding stunt that raises costs for US consumers. 🛑
\"This is clever marketing, but American consumers will foot the bill,\" tweeted Washington Post analyst Heather Long, noting existing agencies like US Customs and Border Protection already handle tariff collection. Customs lawyer Richard Mojica added the plan creates confusion, asking: \"How would the ERS collect payments from foreign manufacturers not linked to US imports?\" 🤔
Democratic Sen. Ron Wyden slammed the move as a potential \"multi-trillion-dollar tax hike\" on families to fund tax breaks for the wealthy. Meanwhile, Canada’s Prime Minister Justin Trudeau vowed to retaliate if Trump imposes new tariffs on Canadian goods, declaring: \"Everything is on the table.\" 🇨🇦⚖️
The controversy comes as Trump’s administration rolls out aggressive trade policies, including 25% tariffs on imports from Canada and Mexico. Critics argue the ERS could escalate global trade tensions while squeezing American wallets. 💼🌍
