U.S. and EU discuss coordinated carbon‑border tax plans for 2026 implementation

U.S. and EU officials negotiated a coordinated carbon‑border tax framework on 18 Nov, expected to begin phased implementation in Q1 2026.

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U.S. and EU discuss coordinated carbon‑border tax plans for 2026 implementation

U.S. and EU discuss coordinated carbon‑border tax plans for 2026 implementation
On 18 November 2025, senior officials from the U.S. and European Union met in Brussels to negotiate a coordinated carbon‑border adjustment tax (CBAM) regime intended for implementation in the first quarter of 2026. The agreement could see shared methodologies for pricing embedded carbon in imports, especially from steel, aluminium and chemicals industries. Analysts noted the move may increase cost pressures for exporters in developing economies and shift global trade flows toward low‑carbon production hubs. 
Market strategists said companies should prepare for rising compliance costs and potential supply‑chain restructuring over the next 12‑18 months.