Eu Cuts Carbon Tariffs On Imports
Mar 03, 2025
Leave a message
US President Donald Trump said on the 26th that the European Union was set up to "screw up" the United States and will impose a 25% tariff on imports from the EU. On the same day, the European Commission announced a significant reduction in the scope of the "carbon border tax" (CBAM).
According to AFP and the British "Financial Times" and other media reports, Trump said ina speech at the first cabinet meeting of his second term: Honestly, the European Union was set up to screw the United States. Asked by a reporter whether the US had decided on the level of tariffs on the EU, Trump replied: "We will be announcing very soon, overall, it will be 25 per cent."
Trump added: "They do take advantage of us in different ways. They don't accept our cars. They basically don't accept our produce, they reject it for all sorts of reasons."
The European Commission announced on Monday that it would significantly reduce the scope of the "carbon border tax" (CBAM), excluding about 90 percent of small and medium-sized importers originally covered by the law, and simplify the administrative burden for those still covered by the law. The EU stressed that the new approach still covers 99 percent of carbon emissions, because the large importers are the main sources of carbon emissions, and the EU will regulate the future.
The EU's first "carbon border tax", also known as the "carbon border adjustment mechanism", stipulates that importers of foreign products that exceed the EU's carbon dioxide emission standards must buy certificates to prevent local players in the EU from being unfairly competitive with imported products due to increased costs of carbon reduction.
This similar tariff policy impacts many developing country exporters, the first stage of application covers upstream products such as steel, aluminum, cement and downstream screws, bolts, etc., from October 2023 into the application buffer period, scheduled to be formally implemented in 2026, and may expand to all industries in the future.
The European Commission on the 26th announced the "Clean Industrial Deal" (Clean Industrial Deal) structure and related programs, focusing on simplifying the administrative costs brought to enterprises by complex regulations, "carbon border tax" CBAM simplified version is one of them.
The EU decided to set minimum controls for now, excluding steel, aluminium, cement and fertiliser industries that import less than 50 tonnes a year, i.e. those that only occasionally import small amounts. This will exclude about 182,000 importers who would otherwise be subject to CBAM, equivalent to a 90% reduction. For foreign operators who are still subject to CBAM, the Commission has also simplified a number of requirements; In the first year of implementation in 2026, importers whose products exceed the carbon emission standard will not have to buy certificates to offset carbon emissions, and the credits will be deferred until 2027.
The Commission stressed that while the scope of controls would be reduced, they would also be strengthened, with heavier penalties for those who tried to circumvent CBAM obligations.
If you are interested, please contact us below.
