ICYMI: Foreign Pollution Fee to Boost Economy, Lower Emissions Unveiled by Cassidy, Graham

WASHINGTON - Bloomberg highlighted the newly released trade and manufacturing policy discussion draft from U.S. Senators Bill Cassidy, M.D. (R-LA) and Lindsey Graham (R-SC) noting its robust support from industry and potential to boost the American economy. The updated Foreign Pollution Fee Act would level the playing field with Chinese manufacturing and expand American production. It is out for public comment until Friday, January 17, 2025.

Foreign Pollution Fee to Boost Economy, Lower Emissions Unveiled by Cassidy, Graham

Kellie Lunney

Bloomberg

China and other countries would have to pay a pollution fee on certain products imported into the US under draft legislation Senate Republicans expect to unveil Wednesday.

The proposal would levy a fee on imports with greenhouse gas emissions, including aluminum, fertilizer, cement, iron, and steel, in an effort to level the playing field for US manufacturers, according to a discussion draft obtained exclusively by Bloomberg Government.

Republican Sens. Bill Cassidy (La.) and Lindsey Graham (S.C.) are seeking feedback on the framework over the next several weeks, with the intention of introducing legislation next year.

A requirement that exporting countries pay for US imports that increase pollution is poised to gain momentum in 2025, as tariffs dominate presidential politics and Congress eyes a tax overhaul. Such a fee, based on pollution intensity, appeals to a diverse group…

The draft bill would not levy a fee on domestic manufacturers, or put a carbon price on US production. The fee would increase as the difference in pollution between a foreign country and the US rises. It could be waived or decreased under certain circumstances, including national security needs or domestic sourcing constraints. The lawmakers are seeking input from stakeholders on how to structure the fee.

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The Cassidy-Graham blueprint would allow the US to forge partnerships with other countries to pay a reduced pollution fee or no fee at all, depending on the agreement. The proposal also would seek to encourage developing economies pursue decarbonization. The idea of a foreign pollution fee is a "clear economic win for the industry…"

Read the full article here.

Background

Cassidy and Graham introduced their Foreign Pollution Fee Act to level the playing field with Chinese manufacturing and expand American production.

The Foreign Pollution Fee Act:

1. Combats China's Exploitation of Trade Rules: This policy will level the playing field for U.S. businesses by countering the unfair practices of non-market economies like China, ensuring American manufacturers can compete and thrive.
2. Strengthens Global Supply Chain Resilience: Diversifying trade relationships will reduce dependence on adversarial nations, making supply chains more secure against geopolitical disruptions and enhancing national security.
3. Revitalizes American Manufacturing: By discouraging imports of pollution-intensive goods, this policy will bring jobs back home, strengthen domestic industries, and reduce reliance on foreign suppliers.
4. Expands U.S. Export Markets: As high-polluting countries modernize their industries, they'll increasingly demand American-made inputs, feedstocks, and cutting-edge technologies, opening new opportunities for U.S. exports.
5. Deepens Trade Ties with Allies: By promoting partnerships with nations that share our economic and environmental values, this policy builds a coalition against predatory practices by the Chinese Communist Party, supporting emerging markets and allies alike.
6. Rewards Leadership in Cleaner Manufacturing: The policy incentivizes international partners to adopt cleaner production methods while ensuring that domestic manufacturers maintain a competitive edge by continuing to lead in industrial decarbonization.

The Foreign Pollution Fee Act was a key topic at Cassidy's Louisiana Energy Security Summit. The summit featured ten panels that explored protecting U.S. interests from unfair trade practices, Louisiana's low-emission manufacturing advantage, and the role of natural gas in strengthening U.S. geopolitical influence. Panelists included presidents and CEOs from Entergy, First Solar, Buzzi UnicemUSA, Orsted, and Aluminum Technologies, former Trump administration officials, and leaders from Louisiana trade associations and major energy and Fortune 500 companies.

In September, he released the 3^rd episode of Bill on the Hill, where he highlights his Foreign Pollution Fee Act and discusses China's growing economy and military coming at the expense of the American worker. After hearing fellow Americans share their concerns, Cassidy presented his plan to address the nexus between economic development, national security, and the environment. His Foreign Pollution Fee Act would even the playing field while holding China accountable.

He penned editorials in Foreign Affairs, The Washington Times, and jointly in the USA Today Network discussing the geopolitical threat that China poses to U.S. global standing. Cassidy also joined Greta Van Susteren on Newsmax to discuss his foreign pollution fee, noting the competitive advantage China receives from intentionally ignoring environmental standards.

Last spring, the Louisiana Senate and House of Representatives unanimously adopted a resolution urging Congress to pursue an industrial manufacturing and trade policy to counter competition from China. Learn more here.

Last Congress, Cassidy released a landmark energy policy outline in response to the Biden-Harris administration's assault on domestic energy. The outline details how we can successfully reset U.S. energy policy, including Cassidy's plan for an Energy Operation Warp Speed to cut permitting red tape and unleash domestic energy and manufacturing. Cassidy led Republican colleagues in opposition to a domestic carbon tax and introduced the first comprehensive judicial reform for permitting bill. He also pushed back on disastrous proposals from the Biden administration to limit development in the Outer Continental Shelf with the introduction of the WHALE Act and the Offshore Energy Security Act of 2023.

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