[Asia Economy New York=Special Correspondent Joselgina] Reports have emerged that the United States and the European Union (EU) are considering new tariffs on Chinese steel and aluminum to address climate change by reducing carbon emissions.
Bloomberg News reported on the 5th (local time), citing multiple sources, that the US and the EU are weighing tariffs on China as a measure to curb carbon emissions and overproduction. While tariffs have traditionally been used as a key tool in trade wars, the fact that they are now being discussed as a means to advance climate change efforts is seen as a new approach.
This idea was first proposed by the Joe Biden administration. Sources who requested anonymity confirmed that the discussions are still in the early stages and no official proposal has been made yet. One official explained, "An agreement with the EU, including specific details such as the criteria for tariff application, may be possible as early as the end of next year, but this is an optimistic timeline."
The US and the EU have coordinated their efforts in responding to climate change. In particular, this tariff measure appears to be based on the judgment that targeting countries with high carbon emissions, such as China, the world's largest carbon emitter, will be effective in addressing climate change.
However, the introduction of new tariffs on China could further escalate the recently intensified US-China tensions. Bloomberg News pointed out that it is unclear what legal authority the Biden administration would use to implement the new tariffs. Some speculate that investigations under Section 232 of the Trade Expansion Act might be repurposed to target carbon emission reductions.
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