The European Commission has rejected a suggestion by Andrew Puzder, the US ambassador to the EU, that its carbon border regulation mechanism is protectionist, insisting that the measure is a climate tool designed to prevent carbon leakage rather than a tariff in disguise. Commission representative
A stated on August 13 that CBAM is fundamentally different from traditional tariffs because it applies equally to all countries based on proven embedded emissions and imposes low or zero obligations on low-carbon goods.
"The Commission does not share the definition of CBAM as a tariff," said a representative of Platts, part of S&P Global Energy, on August 13. "It is non-discriminatory, WTO-compliant, and applies equally to all third countries based on confirmed embedded emissions, regardless of origin. " The response followed Puzder's publication in the Financial Times on August 12, in which he expressed his opinion on trade barriers that Brussels criticizes as part of the US measures.
"Therefore, we do not agree with comparisons with unilateral tariff measures," the representative said.
Protection of climate measures
The Commission stressed that CBAM ensures that imported goods have the same carbon price as EU producers under the EU emissions trading system, supporting global decarbonization efforts. It is important to note that any carbon price already paid in a third country for embedded emissions can be deducted from the CBAM obligation, which prevents double payments for the same emissions.
These remarks highlight the growing transatlantic tensions over industrial trade policy, despite the EU-US tariff agreement coming into force on July 1, which makes permanent a temporary 15% US import duty on most EU goods.
"The protests against US national security measures while erecting protectionist barriers demonstrate striking double standards," Puzder said. "CBAM differs in form, but not in substance".
The final phase of CBAM began on January 1, 2026, after the transition reporting period. The mechanism is aimed at importing goods from ferrous metallurgy, aluminum, cement, hydrogen, fertilizers, and the electric power industry in order to prevent carbon leakage in cases where companies shift production to regions with weaker climate policies.
The EU CBAM program aims to prevent carbon leakage by ensuring that imported goods cost the same as those produced in the EU, potentially affecting trade flows of carbon-intensive products.
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