White House tight-lipped on External Revenue Service on eve of tariff implementation – Washington Examiner
the White House is remaining tight-lipped about the details concerning the implementation of President Donald Trump’s External Revenue Service (ERS), which is set to begin operating shortly. White House press secretary Karoline Leavitt did not provide insights on how the ERS will function in a press briefing just hours before the president is to enact significant tariffs affecting nearly 90 countries. Trump had previously appointed Commerce Secretary Howard Lutnick to establish the ERS to manage revenue collection from these tariffs, possibly bypassing the Internal Revenue Service altogether.
Despite earlier statements indicating that more information about the ERS would be released alongside the tariff enforcement, Leavitt redirected questions to the Department of Commerce, emphasizing the governanceS commitment to the initiative. Currently, the U.S. Customs and Border Protection (CBP) oversees tariff enforcement, but experts caution that the agency may not be adequately prepared for the increased workload, raising concerns about potential tariff evasion.However, CBP asserts that it is fully equipped to implement and enforce the tariffs effectively.
White House tight-lipped on External Revenue Service on eve of tariff implementation
White House press secretary Karoline Leavitt declined to answer questions about how President Donald Trump‘s yet-to-be-launched External Revenue Service will work, just hours before he’s set to enact a wave of tariffs on nearly 90 countries.
In January, Trump signed an executive order directing Commerce Secretary Howard Lutnick to establish the ERS to collect revenue from the president’s tariffs and potentially even supplant the Internal Revenue Service.
White House officials, including Leavitt, had previously stated the administration would deliver more details about the ERS when Trump’s tariffs went into effect but directed inquiries on the agency to the Department of Commerce when pressed for information Tuesday.
“It’s something Secretary Lutnick has taken up, so I defer you to the Department of Commerce,” Leavitt said in response to a question on the subject from the Washington Examiner during Tuesday’s briefing. “But it’s something that he and the President believe quite strongly in, and it’s a promise that they intend to keep.”
Currently, U.S. Customs and Border Protection handles tariff oversight, including revenue collection and evasion enforcement. Experts warned the Washington Examiner after Trump’s “Liberation Day” announcement last week that CBP might not be fully equipped to take on the increase in responsibilities.
“The incentive for cheating is going to go up substantially, especially in the near term. … There’s probably going to be more of that kind of fraud,” said Stephen A. Teller, a Seattle-based False Claims Act and whistleblower attorney, noting he’s helped the U.S. government recover $4 million in lost tariffs over the past decade. “It seems to me that they’re going to miss more fraud over the next little while until more resources are pointed in that direction.”
CBP officials, however, told the Washington Examiner that the agency is fully equipped to continue its tariff oversight, including potentially housing the ERS itself.
“U.S. Customs and Border Protection (CBP) certainly has a huge task on its hands, but it is uniquely positioned to implement and enforce the President’s tariffs using all our enforcement and revenue collection authorities,” CBP said in a statement on Friday “We have fulfilled the demand and remain committed to facilitating legitimate trade while upholding a robust enforcement posture.”
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You can watch Tuesday’s briefing in full below.
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