The European Union is considering expanding its climate tariffs on imports to cover manufactured products such as clothes washers and car parts.
The tariff program, which begins imposing fees this year on imports of electricity and raw materials whose production generates major greenhouse gas emissions, would be extended in 2028 to include 180 finished products made with large amounts of steel or aluminum.
The tariffs are waived for imports from a country with a carbon price similar to the one in the EU, which excludes the United States.
The EU’s climate tariff program, called the carbon border adjustment mechanism or CBAM, is the first in the world to penalize imports based on their contribution to climate change. The program aims to level the playing field for EU-based manufacturers that already pay EU-imposed fees on their greenhouse gas emissions.
