Republicans in the Senate are one step closer to introducing legislation that would charge China and other foreign nations over pollution emitted in producing and shipping goods to the United States.
Sens. Bill Cassidy (R-LA) and Lindsey Graham (R-SC) released a discussion draft of their Foreign Pollution Fee Act on Wednesday, allowing the public to comment on the proposed fee on foreign goods based on their pollution intensity.
The Republicans have argued that the measure would not only address international concerns regarding global emissions but would also encourage domestic American manufacturing, strengthen global supply chains, and specifically counter “unfair trade practices” in China.
“It is only fair to the American worker that we charge China the same thing we charge ourselves to control pollution,” Cassidy said in a statement. “We cannot let the Chinese Communist Party take our jobs by not enforcing environmental regulations. The Foreign Pollution Fee begins to make China pay, promotes fair trade, preserves jobs in Louisiana, and revives American manufacturing for the future.”
Similarly, Graham said it is time for large global polluters to “pay a price for their environmental policies.”
“This bill calls out the foreign polluters and rewards American businesses who are doing the right thing,” the South Carolina Republican said. “We are leveling the playing field, and American manufacturers and business will be the biggest beneficiaries.”
The proposed fee would particularly apply to covered products such as aluminum, cement, glass, iron, fertilizer, and steel. Products and minerals heavily used in the solar, wind, and battery industries do not appear to be covered by the fee.
Not all foreign nations would be subject to the fee in its current form. The senators explained that countries could enter international partnerships with the U.S. to lower any trade barriers. The Republicans said this would allow the U.S. to target China further by displacing the production of Chinese goods.
In its current state, the bill would allow nations to bypass the fee for all or some of the covered products through international partnerships. These partnerships could also be negotiated bilaterally or multilaterally.
Cassidy has long pushed for a pollution fee targeting China, telling the Washington Examiner in May 2023 that it would help the U.S. challenge China as a geopolitical leader on national security, economic, and environmental fronts.
“It is a way for the U.S. to pursue climate, economic, and foreign policy interests in a peaceful way in which China has the ability to adapt and to adjust and to participate fully in a very positive way,” he said at the time. “But it also helps prevent China from gaming, arbitraging, or cheating international norms when it comes to taking care of the environment, etc.”
However, Cassidy has faced skepticism and resistance from other Republicans, some of whom have argued that the pollution fee could open the door to a carbon tax, which is a policy opposed by nearly all in the GOP.
China has long dominated as the No. 1 greenhouse gas emitter globally, making up more than 30% of emissions worldwide in 2022, according to data from Climate Action Tracker. However, the U.S. is not far behind. The U.S. and India are commonly ranked as the No. 2 and 3 global emitters.
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While China’s emissions are expected to continue to rise or stay stagnant in the coming years, emissions from the U.S. are projected to drop by 2030.
The public comment period on the draft discussion bill is open until Jan. 17. While it remains unclear when Cassidy and Graham will introduce the legislation in the Senate, it will likely be next year.