EU’s planned carbon tax regime could lead to another trade war with the US

The European Commission's Fit for 55 package doesn’t make life easy for US president Joe Biden, and would be regarded by many as a tariff by stealth

25th July, 2021
EU’s planned carbon tax regime could lead to another trade war with the US
US president Joe Biden: has a tricky tightrope to walk in pursuing his climate goals . Picture: Getty

As expected, the European Commission’s Fit for 55 package, details of which were announced last week, has generated a reaction in Washington DC.

Officials in the White House and on Capitol Hill have been scrutinising the EU’s plans to achieve carbon neutrality by 2050, and in particular its planned introduction of a carbon border adjustment mechanism (CBAM), which would affect future imports to the single market.

Some in Washington long to emulate the...

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