White House insiders question major Trump choice: 'Does he actually know what he's doing?'
Donald Trump made a major announcement for a new agency just before he was inaugurated, and insiders question how the president's bad decision may have caused the plan to "stall."
Despite boasting about the massive amounts of money the U.S. will bring in from tariffs, Trump has quietly stopped "hyping" his plan for an External Revenue Service to collect those funds, according to a report from Politico Saturday.
"President Donald Trump boasts that his global tariffs are bringing in 'much more money than the country has ever seen,' which he says could help reduce the debt and even pay for rebate checks for American taxpayers," Politico reports. "What Trump no longer mentions is the new agency he once envisioned would be key to implementing those policies: an 'External Revenue Service.'"
According to the outlet, "The president announced plans to create the ERS in a social media post shortly before his inauguration, which he said would be responsible for collecting 'our Tariffs, Duties, and all Revenue that come from Foreign sources.'"
But those plans have failed to materialize, as well as plans for tariff funds to replace income tax in the United States. According to Politico, some insiders are blaming Commerce Secretary Howard Lutnick, who reportedly "took an interest in the ERS, which he viewed as an opportunity to position himself at the center of trade policy, not traditionally a part of that Cabinet secretary’s portfolio."
The report continues:
"He saw it as a possible means of regaining the foremost position in the administration’s trade policy hierarchy, particularly after a plan to place USTR under the Commerce Department appeared to fizzle. After embracing the idea in the press and in other public remarks, Trump handed the service to Lutnick in the spring, even though a feasibility review of the program was still ongoing, the people close to the administration said."
When Trump made the decision for Lutnick to head the project, some insiders were shocked.
The report quotes one of the "people close to the White House" as saying, "I was surprised when they gave it to Lutnick.”
That source also added "that Trump’s decision was met with skepticism from within the administration."
“When they told us they were giving it to him, people were like, ‘Really? Does he actually know what he’s doing with it?’” the individual said.
The report adds:
"Lutnick began to lose interest in the ERS once it became evident that the revenue would fall far short of replacing the income tax. Loftier ideas, such as using the funds to establish a new sovereign wealth fund, failed to gain traction after months of behind-the-scenes discussions, according to two people familiar with the talks and a lobbyist who regularly meets with administration officials."