US, EU Weigh Climate-Based Tariffs on Chinese Steel and Aluminum

  • US officials to propose tariff levels for polluting countries
  • New framework designed to address carbon output, overcapacity

Workers prepare to lift a bundle of steel reinforcing bars in Shanghai.

Photographer: Qilai Shen/Bloomberg
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The US and European Union are weighing new tariffs on Chinese steel and aluminum as part of a bid to fight carbon emissions and global overcapacity, according to people familiar with the matter.

The move would mark a novel approach, as the US and EU would seek to use tariffs -- usually employed in trade disputes -- to further their climate agenda. US aluminum and steel producers climbed in extended tradingBloomberg Terminal, while in Hong Kong, Aluminum Corp. of China and China Hongqiao Group Ltd. slipped.