Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has expressed concerns regarding US President Donald Trump’s announcement to establish an external revenue service to impose taxes and tariffs on foreign countries.
During his inauguration speech on Monday, President Trump announced the creation of an external revenue service to collect tariffs from foreign countries exporting goods to the United States.
Trump stated: “I will immediately begin the overhaul of our trade system to protect American workers and families. Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,”
“For this purpose, we are establishing the external revenue service to collect all tariffs, duties and revenues. It will be massive amounts of money pouring into our treasury, coming from foreign sources. The American dream will soon be back and thriving like never before, to restore competence and effectiveness to our federal government.”
Possible disruption of international trade
Reacting to Trump’s statement on his X handle, Oyedele noted that this move could disrupt international trade and further complicate the already complex global tax system.
“Today (June 20), the 47th President of the United States, Donald J. Trump, announced plans to establish an External Revenue Service to impose tariffs and taxes on other countries.
“This move could disrupt international trade and further complicate the already complex global tax system, highlighting the importance of our ongoing tax reforms.”
Regarding how Nigeria can mitigate the impact of this development on its economy, Oyedele emphasised the need for a revamped tax system.
“By revamping our tax system, we can better navigate potential challenges and seize any opportunities this development may present,” he added.
Trump’s announcement follows his threat last month to impose 100 per cent tariffs on Brazil, Russia, India, China and South Africa (the BRICS nations) if they create a new BRICS currency or back any other currency to replace the US dollar as the world’s reserve currency.
