U.S. Treasury Secretary Janet Yellen has criticized President-elect Donald Trump’s proposal to establish a new government agency, dubbed the “External Revenue Service,” to collect tariffs and duties. Speaking on “The Late Show with Stephen Colbert,” Yellen called the plan duplicative, arguing it would overlap with existing agencies such as U.S. Customs and Border Protection and the Internal Revenue Service. She questioned its efficiency, stating it was unlikely to save taxpayer money and could instead create unnecessary bureaucracy.
Trump announced the plan via social media, vowing to implement it on January 20, alongside sweeping tariffs, including a 10% tax on all global imports, a 25% duty on imports from Canada and Mexico, and a 60% tariff on Chinese goods. While he argues these measures would protect U.S. jobs and revenue, Yellen countered that such tariffs would act as a tax hike on American consumers. She emphasized that higher import costs would not address public concerns about inflation and would instead reduce the competitiveness of U.S. businesses globally.
Trade experts echoed Yellen’s concerns, warning that these tariffs could disrupt international trade, increase costs for consumers, and provoke retaliatory measures against U.S. exports. Yellen further noted that the strategy contradicted Trump’s government efficiency initiative led by Elon Musk and Vivek Ramaswamy, which aims to streamline federal operations and cut spending. “What Americans will see is higher costs and less competitiveness,” she concluded, cautioning against the potential economic fallout.
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