Donald Trump made a new, big promise last week about tariffs — the latest in a string of outsized pledges to use tariffs to benefit the United States.
On his social media platform, he declared that he wants to create what he’s calling the “External Revenue Service” to collect tariffs and other revenues from foreign sources.
To be clear, that name itself is misleading: the overwhelming number of tariffs are paid by American businesses importing goods, not by external foreign sources.
The post is the latest in a long line of promises Trump has made about tariffs, which are at the center of his economic strategy. Those promises on tariffs will be hard to keep, economists say — and some even work against each other.
He also has repeatedly said tariffs would boost U.S. manufacturing. In that same Georgia speech, Trump said he would impose tariffs on cars made in Mexico. “We will put a 100% tariff on every single car coming across the Mexican border and tell them, the only way they’ll get rid of that tariff is if they want to build a plant right here in the United States with you people operating that plant.”
At a recent press conference, he also said tariffs could stem illegal immigration and drugs.
“Mexico has to stop allowing millions of people to pour into our country,” he said. “We’re going to put very serious tariffs on Mexico and Canada, because Canada, they come through Canada too, and the drugs that are coming through are at record numbers.”
