The time has come in 2023: the European Union wants to introduce a new border tax step by step. For example, anyone who wants to import Chinese steel that has caused a lot of emissions during production, will have to pay a carbon dioxide tax on it.
The border tax is meant to protect European companies. They’re going to have to do major greening in the coming years and that costs money. To ensure that these European companies do not outperform the competition, it is becoming more expensive to buy products from companies outside of Europe, but also more polluting.
Economic damage
China is not happy about that. As a major producer of steel and cement, the Chinese will be hit hard by the new tax.
A spokesman for China’s Ministry of Environment and Environment said the new tax was not in line with World Trade Organization rules. It will undermine mutual trust in the global community and the prospects for economic growth.
This economic growth is necessary to do something about climate change, according to the Chinese. The spokesman said a carbon tax in particular would harm countries’ willingness and ability to do something about climate change.
Americans are angry too
Earlier, Americans indicated that they did not see a potential European border tax. “If the tax is primarily protectionist (..), we will respond,” then-Economy Minister Wilbur Ross said in 2020.
The Biden administration is also critical of the European plan. Climate envoy John Kerry said that could hurt trade relations and economies.
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