President-elect Trump plans to create an External Revenue Service that would collect tariffs from U.S. importers, with economists arguing the proposed agency's name obscures who pays.

The creation of a new agency requires an act of Congress, and Republicans hold the majority of both the House and the Senate.

The parallel with the Internal Revenue Service is seen as a signal of the president-elect’s determination to enact sweeping import duties.

The creation of a separate department will likely need congressional support, though Trump could try to establish the department within a different existing agency.

U.S. President-elect Donald Trump said on Tuesday he will create a new government agency called the External Revenue Service "to collect tariffs, duties, and all revenue" from foreign sources as he readies new import tariffs ahead of his inauguration next week.

President-elect Trump said Tuesday he wanted to create an “External Revenue Service” to collect tariffs and other revenue from foreign countries, comparing it to the Internal Revenue Service (IRS), which collects taxes from Americans.

The president-elect's latest proclamation on Truth Social lacked details but appeared to reinforce his tariff plan

President-elect Donald Trump has announced his plan to create a federal body charged with taxing and collecting taxes from U.S. trade partners.

Donald Trump called for the creation of a new federal agency dedicated to collecting the tariffs he's threatening to impose on U.S. trading partners — but he was quickly taught there's already a government entity that does that.