President-elect Donald Trump has announced the creation of the U.S. External Revenue Service to collect tariffs, duties and revenue from foreign businesses once he assumes office on January 20.

In a post on Truth Social, Mr Trump said the U.S. has long relied heavily on internal sources to generate revenue while foreign sources are not bringing in any because of the “weak” trade agreements.

“For far too long, we have relied on taxing our great people, using the Internal Revenue Service (IRS),” Mr Trump said onTruth Social. “Through soft and pathetically weak Trade agreements, the American Economy has delivered growth and prosperity to the World while taxing ourselves.”

Mr Trump noted that it is time for trade arrangements that benefit external companies to change. He subsequently announced the creation of the “External Revenue Service to collect our tariffs, duties, and all revenue that come from foreign sources.”

“We will begin charging those that make money off of us with trade, and they will start paying, Finally, their fair share,” he added.

Currently, U.S. Customs and Border Protection is responsible for collecting tariffs. Mr Trump had already vowed to impose 10 per cent import tariffs on China and 25 per cent on fees on products from Mexico and Canada.