Donald Trump to create the External Revenue Service

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and Donald Trump’s solution to collecting revenue from foreign sources.

Transcript

00:00I'm Conway Gittins in New York City. Here's what we're watching on the street today.

00:03Wall Street is off to a banner start on Wednesday after another market-friendly

00:08inflation report. While headline inflation rose 0.4% in December, a

00:12measure within the CPI which excludes food and energy rose just 0.2%. The so

00:19called core rate had been higher for four months straight. That core rate was

00:23up 3.2% from a year ago, which also showed a cooling off in inflation.

00:28Investors hope the numbers will mean the Federal Reserve will be more

00:32inclined to lower interest rates than policymakers indicated in December. In

00:38other business headlines, President-elect Donald Trump wants to create a new

00:43department called the External Revenue Service. The sole purpose of this entity

00:48would be the collection of tariffs. This job, by the way, already belongs to U.S.

00:53Customs and Border Protection. Trump laid the groundwork for his expansive tariff

00:58collection plan in a post on Truth Social, quote, for far too long we have

01:03relied on taxing our great people using the Internal Revenue Service, IRS, through

01:09soft and pathetically weak trade agreements, the American economy has

01:13delivered growth and prosperity to the world while taxing ourselves. It is time

01:18for that to change. Trump went on to say the tariffs will be a way to, quote, begin

01:24charging those that make money off of us with trade and they will start paying

01:28finally their fair share. He has proposed wide-sweeping tariffs on all

01:33goods imported into the U.S., including 10% tariffs on China and 25% tariffs on

01:39Canada and Mexico. There had been recent ideas floated in the media that the

01:44tariff imposition could be gradual. This post throws those ideas into doubt. He

01:50says the, quote, External Revenue Service will be born on the day of his

01:55inauguration. That'll do it for your daily briefing from New York City. I'm

01:59Conway Gittins with The Street.

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