The United States and the European Union are considering imposing new tariffs on Chinese-made steel and aluminum. By doing so, they want to reduce the overcapacity of steel and aluminum and carbon emissions, people told Bloomberg News.
Generally, higher taxes are used in trade disputes. But European and US action will further advance the climate agenda. The idea comes from US President Joe Biden. For now, sources say, this is just an idea and not yet a detailed proposal. A deal with the EU, including details of the limits, is not expected before the end of next year. That would be in the best case scenario.
China is a major polluter, but the world’s largest producer of steel and aluminum. If the additional tariffs are indeed imposed, it will strain relations with China. Interestingly, parties including China have committed to working together to reduce emissions.
The willingness of the US and EU to work together to tackle the climate crisis is seen as a positive sign. Relations between the US and Europe in particular have been plagued by tensions over trade. According to the European Union, a landmark law signed by Biden discriminates against European industries. In addition to billions in green energy subsidies, the Inflationary Reduction Act (IRA) includes tax credits for the purchase of American-made electric cars and batteries. European countries fear that these measures will set their industries back.
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