U.S. Can Build and Fight Climate Change at Same Time
Waiving Trump-era tariffs on imports of materials that are produced using low-carbon-intensive methods would promote sustainability as the U.S. ramps up spending on infrastructure.
President Joe Biden can use trade policy to advance his climate goals.
Photographer: Michael Nagle/Bloomberg
As part of efforts to pay for President Joe Biden's proposed $3.5 trillion spending plan and ahead of a burst in expected infrastructure outlays, Senate Democrats are proposing the U.S. impose tariffs on carbon-intensive imports. This idea resembles the European Union’s newly unveiled border-adjustment taxes on steel, cement and aluminum produced in countries with lax environmental regulations.
These levies have appeal in that they do the double duty of targeting polluters while raising money to cover other expenses. But when it comes to prioritizing climate initiatives, it would also be worth relaxing Trump-era tariffs that penalize low-carbon-emitting producers, even if it means forgoing revenue.