❓WHAT HAPPENED: The Trump administration announced opposition to a United Nations (UN) proposal to impose a tax on the shipping industry to reduce carbon emissions.
👤WHO WAS INVOLVED: President Donald J. Trump, Secretary of State Marco Rubio, Secretary of Transportation Sean Duffy, Secretary of Energy Chris Wright, Secretary of Commerce Howard Lutnick, and the International Maritime Organization (IMO).
📍WHEN & WHERE: The proposal was approved by a UN committee in April and is set for a vote in October, with potential implementation in 2027.
💬KEY QUOTE: “Whatever its stated goals, the proposed framework is effectively a global carbon tax on Americans levied by an unaccountable UN organization.” – Trump administration statement
🎯IMPACT: The administration argues this proposal will increase costs for American consumers, energy providers, and shipping companies, and threatened retaliation against nations supporting the amendment.
The Trump administration has moved to oppose a United Nations (UN) proposal to impose a carbon emissions tax on the shipping industry, labeling it a “global carbon tax on Americans.” The proposal, known as the “Net-Zero Framework,” was approved by a committee of the UN’s International Maritime Organization (IMO) in April and is set for a vote in October. If implemented, it would go into effect in 2027.
The framework seeks to set new carbon emission standards for ships and introduce a global pricing mechanism for emissions. Ships exceeding the thresholds would face punitive fees, while those within the standards would receive financial incentives. The Trump administration has argued that this plan would raise costs for American consumers and businesses. “These fees will drive up energy and transportation and leisure cruise costs,” the administration’s statement warns.
In a joint statement, Secretary of State Marco Rubio, Secretary of Transportation Sean Duffy, Secretary of Energy Chris Wright, and Secretary of Commerce Howard Lutnick said the U.S. “unequivocally rejects this proposal” and will not accept any measures that increase costs for American citizens or businesses. The statement also warned that the U.S. would “not hesitate to retaliate or explore remedies” if the proposal is passed.
Secretary of Commerce Howard Lutnick criticized the framework in a separate statement, saying, “America is setting the terms on how our products are going to market. We have every right to refuse their ‘net-zero framework,’ which would be a tax on every shipment of American goods.” He added, “International bureaucrats can take their [woke] climate nonsense elsewhere.”
The Trump administration’s move to oppose the UN proposal aligns with its broader strategy to reduce foreign influence over American energy policy and deregulate the energy sector. Notably, President Trump withdrew the U.S. from the Paris Climate Accords on his first day in office.
Additionally, the Environmental Protection Agency (EPA) is working to roll back Barack Obama-era climate regulations, which could save American businesses and families an estimated $1 trillion in hidden costs, according to EPA Administrator Lee Zeldin.
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