US floats new steel, aluminium tariffs based on carbon emissions

    WORLD  09 December 2022 - 00:34

    US officials are proposing to levy tariffs on steel and aluminium based on how much carbon the producing country's industries emit, in a bid to fight climate change and "dirty" metals made in China and elsewhere, two people familiar with the plan said on December 7.

    The proposal from the US Trade Representative's office to be negotiated with the European Union would create a global "club" of market-oriented countries seeking to reduce carbon emissions. The plan would set "emissions intensity" standards for the production of specific steel and aluminium and products, according to a document describing the plan seen by Reuters.

    Countries that are members of the "global arrangement" with emissions exceeding these standards would pay higher tariffs when exporting metals to countries with lower emissions, according to the document. Countries with steel and aluminium plant emissions at or below those of the importing country would pay no carbon-based tariffs.

    “There would be an advantage of being in the club, as it would provide a lower level of carbon tariffs, while countries outside the club would pay higher tariffs,” one of the sources said, adding that the proposal aimed to incentivize investments to reduce emissions.

    “This is all very conceptual and there’s a lot of work ahead on this. The details are going to be very important.”

    Countries outside the low-emissions club would be subject to a higher rate of tariffs when exporting steel and aluminium to member countries.

    The proposal, which is now being shared with industry and EU officials, has grown out of US-EU discussions on “green” steel production over the past year after Washington halted tariffs on EU-produced steel and aluminium in exchange for a quota system.

    The two sides agreed to work to reduce carbon emissions in steel and aluminium production while tackling the longstanding problem of excess capacity in the industries, much of it centered in China.

    The proposed low-emissions metals club would exclude China and other "non-market" economies dominated by state-owned or state-directed enterprises, setting out criteria to prohibit member countries from contributing to the problem of unviable excess steel and aluminium capacity.

    A USTR spokesperson did not immediately respond to a request for comment on the plan.

    AIMED AT CHINA

    US steelmakers claim to have the world's lowest carbon emissions levels, in part because 70 per cent of American steel is made from scrap iron in electric-arc furnaces rather than smelting iron ore in coal-fired blast furnaces. Steelmakers elsewhere, including in Europe, rely more heavily on coal, and the plan as proposed would be advantageous to US producers.

    The US-EU talks on low-carbon steel have been aimed in large part at China, which relies on coal for most of its steel output as well as low-grade iron ore that contributes to high carbon emissions.

    If implemented, the plan would provide new grounds for excluding Chinese steel from Western markets. Most US tariffs are currently based on anti-dumping laws to combat pricing below production costs, laws aimed at combating unfair government subsidies or laws aimed at safeguarding strategic industries.

    But hurdles to the plan are significant. The EU has proposed a carbon border adjustment and carbon trading schemes that would be quite different from a simpler tariff proposed by the United States, so reconciling these different systems may take time.

    And the Biden administration's legal authority for putting carbon-based tariffs in place is far from clear. Congress has constitutional jurisdiction over tariffs and other tax and spending matters, and the sources said the plan would almost certainly require legislation - an extremely difficult proposition for Biden with Repblicans taking control of the House of Representatives next year.

    Caliber.Az

    Subscribe to our Telegram channel


Read also

Ukraine, Russia swap prisoners; bodies of British volunteers returned

04 February 2023 - 17:15

US, allies denounce Iran’s ‘inadequate’ response to IAEA report

04 February 2023 - 19:02

Japanese PM fires senior aide over homophobic comments

04 February 2023 - 23:01

Hong Kong set to give away 500,000 free airline tickets to lure back tourists

04 February 2023 - 22:00

American volunteer aid worker killed in Bakhmut while helping Ukrainian civilians

04 February 2023 - 14:33

Portugal refuses to send German-made Leopard 2 tanks to Ukraine

04 February 2023 - 14:43
ADVERTS
Latest news

    Japanese PM fires senior aide over homophobic comments

    04 February 2023 - 23:01

    Hong Kong set to give away 500,000 free airline tickets to lure back tourists

    04 February 2023 - 22:00

    UK preparing to proscribe Wagner Group as terrorist organisation

    04 February 2023 - 20:59

    Iranian director Jafar Panahi released from jail after going on hunger strike

    04 February 2023 - 20:03

    US, allies denounce Iran’s ‘inadequate’ response to IAEA report

    04 February 2023 - 19:02

    UK’s ambassador to Azerbaijan visits Ateshgah Temple

    04 February 2023 - 17:58

    Azerbaijan, Montenegro sign agreement on air communication

    04 February 2023 - 17:42

    International travelers from 12 countries leave for Fuzuli

    04 February 2023 - 17:29

    Ukraine, Russia swap prisoners; bodies of British volunteers returned

    04 February 2023 - 17:15

    UK’s traveler: Khankendi-Lachin road - open for movement

    04 February 2023 - 17:03

    US former treasury secretary sees risk of ‘sudden stop’ in economy after jobs surge

    04 February 2023 - 16:53

    Traveler from Wales presents gifts to children of families living in Shusha

    PHOTO

    04 February 2023 - 16:40

    Reuters: Indian refiners pay traders in dirhams for Russian oil

    04 February 2023 - 16:28

    “Israel supports Azerbaijan and has already taken Iran down the peg"

    Alexander Shapiro Suliman's standpoint

    04 February 2023 - 16:13

    Intergovernmental agreement between Azerbaijan, Türkiye and Turkmenistan approved

    04 February 2023 - 16:00

    Trafigura: ‘Shadow Fleet’ of tankers hauling Russian oil swells to 600 ships

    04 February 2023 - 15:46

    International travelers enjoy Jidir plain view in Shusha

    04 February 2023 - 15:32

    Cristiano Ronaldo scores his first goal for new club Al Nassr

    04 February 2023 - 15:20

    Minister: Azerbaijan exports 600 million cubic metres of gas to Bulgaria in 2022

    04 February 2023 - 15:07

    Turkish Airlines cancels 238 flights due to weather conditions

    04 February 2023 - 14:55

    Portugal refuses to send German-made Leopard 2 tanks to Ukraine

    04 February 2023 - 14:43

    American volunteer aid worker killed in Bakhmut while helping Ukrainian civilians

    04 February 2023 - 14:33

    Expert: Attack on Azerbaijan’s embassy in Iran should serve as wakeup call

    04 February 2023 - 14:23

    Ex-justice minister Zeynalyan may become Armenia's ombudsman

    04 February 2023 - 14:10

    Training course graduates get certificates in Azerbaijan

    PHOTO/VIDEO

    04 February 2023 - 13:57

    International travelers from 12 countries arrive at rally site on Khankandi-Lachin road

    04 February 2023 - 13:42

    Ukraine to extend martial law, mobilisation for 90 days

    04 February 2023 - 13:30

    Türkiye to launch GOKDOGAN, BOZDOGAN missiles from onshore, offshore platforms

    PHOTO

    04 February 2023 - 13:24

    Türkiye, Indonesia sign military cooperation agreement in Ankara

    04 February 2023 - 13:17

    Azerbaijan's ambassador to Mexico exposes Armenian lies

    04 February 2023 - 13:03

    Ukraine announces early arrival of Leopard, Challenger and Abrams tanks

    Defence minister's statement

    04 February 2023 - 12:50

    Suspected supporter of PKK terrorist group detained in Sweden

    04 February 2023 - 12:38

    Gibraltar accuses Spain of 'gross violation of sovereignty' over customs operation

    04 February 2023 - 12:26

    German traveler: Visit to liberated Azerbaijani lands - unique chance

    04 February 2023 - 12:16

    bp eyes to commission three more wells at Shah Deniz

    04 February 2023 - 12:02

    Ukraine claims Russian death toll rises to more than 130,000

    04 February 2023 - 11:51

    Azerbaijan performs practical exercises on fire training

    VIDEO

    04 February 2023 - 11:39

    Azerbaijani border guards thwart another drug smuggling from Iran

    PHOTO

    04 February 2023 - 11:29

    ISW: Russia perpetuates war in Ukraine as direct threat to its security

    04 February 2023 - 11:16

    US, EU, G7 and Australia announce new price cap on Russian petroleum products

    04 February 2023 - 11:02

    Organisation of Turkic States condemns burning of Quran in Sweden, Denmark

    04 February 2023 - 10:51

    Top US diplomat slams 'unacceptable' China balloon

    04 February 2023 - 10:42

    International travelers from UK arrive in Karabakh

    04 February 2023 - 10:32

    France, Italy ready to deliver SAMP/T anti-missile system to Ukraine

    04 February 2023 - 10:20

    Organisation of Turkic States, International Crisis Group discuss global crisis issues

    04 February 2023 - 10:11

All news