U.S. President Joe Biden and top members of his administration have said publicly they support a carbon border tax as a tool to advance climate goals, but the White House has not endorsed the Democratic proposal.
-The White House is withholding support for a Democratic proposal to impose a pollution tax on imports from China and other countries, casting doubt on whether Democrats will be able to deploy what environmentalists consider one of the greatest weapons to tackle global climate change in a massive spending bill this year.
The White House is concerned the Democrats' proposal will raise prices on a host of consumer goods, from cars to appliances, and conflict with Biden's pledge not to tax any American earning less than $400,000 per year, according to two sources familiar with the discussions. The White House is also worried any tax that raises prices could fuel Republican attacks that his policies are driving up inflation, they say.
It is also considered a way to keep American companies whose manufacturing processes emit heavy amounts of carbon pollution from relocating to countries with looser environmental rules, a phenomenon known as leakage. The U.S. economy lost https://www.reuters.
In the U.S. congressional proposal, companies that want to sell concrete, steel, aluminum or other commodities into the United States would be required to pay a tariff if their country imposes fewer carbon-cutting regulations than American companies.
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