Trump's External Revenue Service (ERS) to Begin with Reciprocal Tariffs

In today's video, I want to update you on the ERS, so that's President Trump's External Revenue Service. So first thing is that I need to bring you up to speed. So I want to show you what President Trump said. So it's going to be a video clip from January 20th at President Trump's inaugural speech. So please take a look. I will immediately begin the overhaul of our trade system to protect American workers and families. Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens. For this purpose, we are establishing the External Revenue Service to collect all tariffs, duties, and revenues. It will be massive amounts of money pouring into our treasury coming from foreign sources. The American dream will soon be back and thriving like never before. Okay, so to recap what President Trump said. He said that we're going to tariff and tax foreign countries to enrich our citizens. That it's going to be a massive amount of money pouring into our treasury coming from foreign sources. And that the External Revenue Service will collect these tariffs and taxes. Okay, so first let's stay focused on the status update of the ERS and then we're going to get back to these statements. Okay, so you just saw that video clip of President Trump on January 20th. So what has been going on with the ERS since then? So I'm going to show you this video clip from March 11th. So a reporter asks what's the status of the ERS? So the White House Press Secretary says that the ERS needs the reciprocal tariffs to go into effect first, which is going to happen on April 2nd. So please take a look. Christian. Thanks, Caroline. Two questions. Since we've been talking a lot about tariffs, have there been any updates on standing up the External Revenue Service to collect revenue from that? Well, we need reciprocal tariffs to go into effect first. And as you know, the President will be rolling those out on April 2nd. And then the next start of that process is collecting that revenue to ultimately create the External Revenue Service, which Secretary Lutnick is working very hard on and is quite enthusiastic about, if you have noticed from his media interviews. Okay, so the Secretary of Commerce, Howard Lutnick, is in charge of running the ERS. Okay, so here's what Commerce Secretary Lutnick says about April 2nd and about the ERS. So please take a look. Howard, do you want to say a couple of words? Well, what is so exciting is April 2nd is just around the corner, and that's American Liberation Day. That's the day when the rest of the world starts to treat America with respect and your leadership, understanding how the rest of the world treats us and what balance and what fair trade finally is going to be, is going to take care of America. It's going to launch the External Revenue Service to start to build the power and prestige of America back, and I'm honored to be helping you on that course. It's an interesting term, right? The External Revenue Service. We're going to take in a lot of money from the outside, and that's going to keep our taxes low and, I think, getting a lot lower. It's going to be a lot of money, and that will — the external will take care of the internal to a large extent. So I think it's going to be a beautiful transformation. Okay, so there you have it. And to recap the whole situation in a nutshell, for the External Revenue Service to start, they need the reciprocal tariffs to start, and the reciprocal tariffs are going to start on April 2nd. So this week is going to be a very important week for the ERS. Now listen, I want to share with you these four very important points. So the first thing is that So the CBP is the agency that currently collects tariffs. So if you think about it, the ERS, the whole creation of this External Revenue Service, it's really just a rebranding because that's what the CBP does. So I guess it just sounds catchier, you know, the ERS, but from what Trump has said, the ERS is literally going to do nothing different compared to the CBP. Now the second thing that you must know, which most people have learned or realized, is that tariffs are not a tax on a foreign country. So to clarify this whole situation, the importer pays the tariff, not the foreign country. So I'll give you a straightforward example. If Walmart imports a product from China, Walmart is going to pay the tariff, not China. And then Walmart, of course, they're going to raise their prices for US shoppers. So if you take a look at the whole tariff situation for vehicles, so the vehicle tariffs, President Trump is threatening the car companies, you better not raise your prices on your cars. But of course, the car companies, they're going to raise their prices. They're not going to listen to President Trump. Trump has no power to do price controls. And even if the car is made in the United States of America, the vehicle parts are coming from foreign countries. Now, the third thing I want to tell you is that tariffs are inflationary. So people are going to argue that inflation didn't spike when President Trump imposed tariffs in his previous term. The reason why inflation didn't spike when that happened is because the tariffs that Trump did in his previous term were tiny. So his tariffs were so small that it didn't spike inflation and it didn't bring in a massive amount of money to the treasury either. And the last thing I want to tell you is that tariffs will not replace the IRS. As much as I would like to see the IRS be gone, it's not going to happen anytime soon. And I'm going to show you why. Now, I want you to take a look at this. For fiscal year 2025, here are the numbers so far. So here's the total amount of revenue that the government has collected so far. And it's mostly from the IRS. So most of it is coming from federal income taxes and payroll taxes, which is Social Security and Medicare taxes. Now, you see this tiny little blip right there. That's how much revenue that tariffs have brought in so far this year. Now, just take a look at this tariff income for the government compared to the government's total income. Okay, now I want you to watch the chart very closely. If the Trump administration keeps the additional tariffs on China, and Trump actually goes through with the 25% tariffs on Canada and Mexico, on all Canadian and Mexican imports, then this is where the tariff revenue would be. This is nowhere close enough to replace the IRS. So that is a sad reality. And imagine that, just put that into perspective. We in the world are making this huge fuss over 25% tariffs on Canada and Mexico, right? But to replace the IRS, we would need to put tariffs around 300% to 400%, not 25%. And listen, I want you to think about this just logically. If tariffs are so great, if tariffs are the key, like the answer, if they're going to bring in massive amounts of money and save this country, then why doesn't Trump just get on with it already? And why doesn't he just even go harder on tariffs? So you know why? It's because with tariffs, for certain products or industries, yes, the pros outweigh the cons. But for most products and industries, the cons outweigh the pros. And now, I mean, it's becoming more obvious, you know, what the truth is, and more people are catching on to this. Trump is no longer fooling anyone, even the Republicans. So this is becoming a very tricky situation for Trump. And when Trump sees that Joe Rogan saying that Trump's tariffs are a stupid idea, and when Trump sees the stock market falling because of tariffs, and Trump sees that inflation expectations are going higher, Trump knows that he cannot go full throttle on tariffs. Which means that if he cannot go full throttle on tariffs, then the ERS is not going to achieve much, which is what I've been saying from day one, which you can easily confirm. But President Trump and Commerce Secretary Lettnick are promising big things with the ERS, and they're saying that's all going to begin on April 2nd. So I'm sure that it's going to cause some damage and volatility in certain sectors, but it's definitely not going to save America or replace the IRS. You know, that is wishful thinking. So that is your ERS status updates, and also my opinion. I know that's not what a lot of people, well, I know that's not what some people want to hear. Some people want to hear that, yeah, tariffs are going to be the solution to saving this country, and it's going to happen very quickly. But I'm just going off, I'm just giving you my honest opinion, just based off the facts, and just common sense as well. If you disagree, please let me know why in the comments down below. Thank you for the support. Please subscribe, and I wish you a very nice day. Take care.