US President-elect Donald Trump announced on Tuesday that he plans to create a new agency called the Foreign Revenue Service to collect money owed to the US from foreign countries.

“For too long, we have relied on the Internal Revenue Service (IRS) to tax our Great People,” Trump said on TRUTH Social.

“Through soft and woefully weak Trade Agreements, the American Economy has given the world growth and prosperity while taxing ourselves,” the president-elect continued. “It's time for that to change. I'm announcing today that I will create a FOREIGN REVENUE SERVICE to collect our Tariffs, Duties and all Revenue from Foreign sources.”

He added: “We will start paying those who make money from us by Trade and they will eventually start paying their fair share. January 20, 2025 will be the birth date of the Foreign Revenue Service. MAKE AMERICA GREAT AGAIN!”

CANADA PREPARED ANSWER TO TRUMP'S TARIFFS: 'THERE IS NO WINNER IN THE TRADE WAR'

U.S. President-elect Donald Trump speaks to members of the media during a news conference at the Mar-a-Lago Club on January 7, 2025 in Palm Beach, Florida. (Scott Olson/Getty Images/Getty Images)

At a press conference at his Mar-a-Lago mansion last week, Trump vowed to impose “significant tariffs.” against Mexico and Canada unless they adequately curb the flow of drugs and migrants from their border with the United States, the president-elect has vowed to usher in a “golden age for America,” adding that the United States lacks access to natural resources “that no one else has.”

During the election campaign, Trump proposed imposing minimum tariffs of 10% to 20% on all imported goods, and import duties of 60% or more. Import from China. Last month, he threatened to impose a 25% tariff on all imports from Canada and Mexico, his first day in office, but it is unclear how the incoming administration's plans will play out.

Trump's nominee for Treasury Secretary Scott Bessent arrives for a meeting with Sen. Mike Crapo, R-Idaho, on December 10, 2024 in Washington, DC. (Anna Moneymaker/Getty Images/Getty Images)

TRUMP DEMANDS EU TO BUY MORE AMERICAN OIL AND GAS OR ALL TARIFFS

Bloomberg reported on this On Tuesday, Trump's transition team is studying how to gradually increase tariffs month by month, based on executive authority granted under the International Emergency Economic Powers Act. One option being considered is to raise tariffs for trading partners by about 2% to 5% per month, with the aim of offsetting any inflationary effects, according to the report.

Scott Bessent, Kevin Hassett and Stephen Miran are leading the development of the tariff strategy, Bloomberg reported, citing sources familiar with the matter. Trump tapped them to be Treasury secretary, director of the National Economic Council, and leader of the Council of Economic Advisers, respectively.

White House economic adviser Kevin Hassett speaks to reporters outside the West Wing of the White House on May 22, 2020. In his second term, Trump nominated him for the post of director of the National Economic Council. (Alex Wong/Getty Images/Getty Images)

CBS Newsmeanwhile, he noted that there are already federal agencies that collect revenue from tariffs. Tariffs are set by the Department of Commerce and the United States Trade Representative, but collection and enforcement are primarily handled by U.S. Customs and Border Protection. Those collections are then deposited into the United States General Fund.

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Trump has also proposed imposing higher tariffs on China to hold Beijing accountable for allegedly smuggling illegal drugs into the United States.

The president-elect was also threatened European Union buy more American oil and gas or “tariffs all the way!”