How Pollution Tariffs Could Seal Trade Deals
President Donald Trump’s trade agenda is preparing to enter a new phase, with deadlines on tariff pauses fast approaching and talks ongoing with numerous major economies. As the White House’s economic team seeks to reset US trade partnerships along fairer terms for American workers, additional options must be considered to ensure the gains made in trade negotiations thus far are consolidated for years to come and focused on the underlying causes of our trade imbalances.
A comprehensive and enduring trade reset should include asymmetric policies that hit predatory foreign manufacturers where they hurt most, with minimal impact on the American business environment and consumers. A pollution tariff attached to imports manufactured with dirty, pollutive processes is one such asymmetric option that could give the president vital trade leverage in a domain where the US economy is well-insulated from tit-for-tat retaliatory measures. Tariffs could be imposed on any number of tangible environmental measures where the United States is more efficient, including air and water pollution.
Some of our most important trade partners, particularly China, have achieved significant manufacturing gains in recent decades through unfair industrial........
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