Instead of the IRS, Trump plans to create an “external revenue service” that will “get rid of all these tax scams that hammer against America” and raise $1 trillion of revenue, he said, promising that Elon Musk’s cost-cutting task force DOGE would also find $1 trillion in waste and fraud to eliminate.

In January, Trump vowed to create an “External Revenue Service” to oversee tariffs, though he stopped short of saying he would eliminate the IRS. The rebranding reflects Trump’s oft-repeated and inaccurate claim that tariffs are paid by foreign countries.

In fact, they’re a tax paid by American companies, with the costs passed on to consumers. They’re also collected by Customs and Border Protection, not the IRS, according to Axios. Trump has nevertheless said that “tariff” is “the most beautiful word in the dictionary.”

In February, he announced a 25 percent tariff on all products from Mexico and Canada, and 10 percent on all products from China, before agreeing to temporarily pause the tariffs against Mexico and Canada. If the proposed tariffs are implemented, they’re projected to cost about $272 billion per year, triggering massive inflation, economists told CNN and Axios.

Trump’s “external” service would also handle duties—a tax based on the type of product, as opposed to the country of origin, that is also paid by American companies—and “all revenue that comes from foreign sources,” Trump wrote in a Truth Social post last month.