Feds Consider Carbon Border Tax on Foreign Imports

Cargo ships berth at a port in Qingdao in China's eastern Shandong province on May 8, 2019. - China's exports fell more than expected in April while imports rose, official data showed on May 8, ahead of high-stakes talks aimed at resolving a trade war with the United States. (Photo …
STR/AFP/Getty Images

Officials with the United States Trade Representative Office (USTR) say they are considering a carbon border tax on foreign imports to help reduce greenhouse gas emissions.

In a detailed report, USTR officials noted that they may impose a carbon border tax — which would work similarly to a border adjustment tax — that would tax imported goods to the U.S. for every unit of carbon production used in producing those goods.

The report states:

The Biden Administration will work with allies and partners that are committed to fighting climate change. This will include exploring and developing market and regulatory approaches to address greenhouse gas emissions in the global trading system. As appropriate, and consistent with domestic approaches to reduce U.S. greenhouse gas emissions, this includes consideration of carbon border adjustments. Additionally, the Biden Administration will work with allies as they develop their own approaches and act against trading partners that fail to meet their environmental obligations under existing trade agreements. [Emphasis added]

The plan, likely favored by USTR nominee Katherine Tai, is expected to be opposed by economic globalists in President Joe Biden’s administration who advocate for the elimination of tariffs and for global free trade.

Michael Stumo, CEO of the Coalition for a Prosperous America (CPA), told Breitbart News that any carbon border tax should apply equally to goods imported from high-carbon countries.

“If a carbon border tax is considered, it should tax all goods and services from a high carbon country equally,” Stumo said. “Allowing heavy pollution is an economy wide subsidy in China and other poorly regulated countries, providing cheap, dirty energy to all their manufacturing and service businesses.”

Tai touted the benefits of tariffs on imported goods in a confirmation hearing last week, saying, “tariffs are a legitimate tool in the trade toolbox.”

John Binder is a reporter for Breitbart News. Email him at jbinder@breitbart.com. Follow him on Twitter here. 


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