Peter Schiff on Trump’s External Revenue Service

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In a bold move, President-elect Donald Trump has announced the creation of a new government agency, the External Revenue Service. This agency aims to collect tariffs, duties, and other revenues from foreign sources, ostensibly to reduce reliance on income taxes and shift the tax burden to foreign entities.

However, Peter Schiff has not minced words in his critique of this development. He pointedly remarked, “Instead of eliminating government agencies, Trump just promised to create a new one, the External Revenue Service. But all the revenue collected will be paid by Americans who buy imported products. If Trump actually believes what he is saying, the nation is in a lot of trouble.”

Schiff’s criticism highlights a fundamental flaw in the plan: the reality that tariffs and duties are ultimately paid by American consumers. By imposing these additional costs on imported goods, the prices of everyday items—from electronics to groceries—are likely to rise. Schiff’s comments imply that this strategy is misguided and could lead to increased financial strain on American households.

Moreover, Schiff’s criticism underscores a deeper concern about the expansion of government bureaucracy. By creating yet another government agency, the burden on taxpayers only grows, contradicting the conservative principle of reducing government size and spending. Schiff’s pointed remarks reflect a broader skepticism about the efficiency and effectiveness of such a strategy in achieving its intended economic goals.

Instead of eliminating government agencies #Trump just promised to create a new one, the External Revenue Service. But all the revenue collected will be paid by Americans who buy imported products. If Trump actually believes what he is saying, the nation is in a lot of trouble.

— Peter Schiff (@PeterSchiff) January 15, 2025