U.S. Treasury Secretary Janet Yellen rejected President-elect Donald Trump’s plan to create a new government agency for tariff collection, calling it unnecessary and costly. Speaking on “The Late Show with Stephen Colbert,” Yellen argued that Trump’s proposed “External Revenue Service” would duplicate existing agencies, particularly U.S. Customs and Border Protection (CBP), which already handles tariffs and duties.
Trump unveiled the plan on Truth Social, promising to establish the agency on his inauguration day. He stated it would oversee the collection of tariffs, duties, and all revenue from foreign sources. However, it remains unclear whether this new agency would replace existing systems or add further bureaucracy. Yellen expressed doubts, emphasizing that creating another agency would not align with efforts to streamline government and save taxpayer money.
Yellen also addressed Trump’s repeated calls for new tariffs, warning that they would increase costs for American consumers. Trump has proposed a 10% tariff on global imports, a 25% tariff on goods from Canada and Mexico, and a 60% tariff on Chinese goods. According to Yellen, these tariffs would harm U.S. consumers by raising the cost of imported goods and making U.S. companies less competitive internationally.
Yellen concluded that these measures would fail to address Americans’ concerns about rising prices and would disrupt trade flows, potentially leading to retaliatory actions against U.S. exports.
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