Bill · S. 1325· Senate(119-S-1325)
Foreign Pollution Fee Act of 2025
- Introduced
- 4/8/2025
- Last activity
- 4/8/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Bill Cassidy
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
The Foreign Pollution Fee Act of 2025 aims to level the playing field for American manufacturers by imposing an ad valorem fee on certain imported products. These fees are based on the pollution intensity associated with the production of the goods in their country of origin. The bill specifically targets industries such as aluminum, steel, cement, fertilizer, glass, hydrogen, and solar products. By taxing highly polluting imports, the act seeks to counteract the competitive advantage held by foreign polluters, particularly in nations like China and Russia. The legislation also allows for the creation of international partnership agreements to reduce fees for partner countries. Ultimately, the goal is to strengthen domestic industry and reduce dependence on high-emitting producers.
Yes· 3 of 12
Does this cut the pollution that drives climate change?+7
By penalizing high-emitting imports, the bill incentivizes global production methods that emit less carbon.
Does this better protect air, water and wildlife?+6
The bill uses trade policy to enforce higher environmental standards for goods entering the U.S. market.
Would union members be better off under this?+6
The bill protects domestic industrial jobs, which often benefits organized labor and manufacturing workers.
The opposite· 3 of 4
Does this make trade with other countries easier?-2
The imposition of significant fees on imports may create trade tensions and retaliatory measures from key trading partners.
Would households on low incomes be better off under this?-2
Higher prices for industrial goods could indirectly increase the cost of living for all households.
Is this likely to slow the rise in prices?-2
Imposing fees on essential imported goods like steel and cement could lead to higher costs for domestic consumers and industries.
Who it would affect, and how
Potential Positive Impacts for People
-
Strengthening Domestic Industry and Job Creation: The bill aims to reward manufacturers in the United States for their environmental leadership, which is intended to strengthen domestic industry and create high-paying jobs (Section 2(a)(13)).
-
Levelling the Competitive Playing Field: The act seeks to ensure that foreign adversaries cannot exploit weak environmental standards to gain an unfair advantage over American workers and manufacturers (Section 2(b)).
-
Reduced Reliance on Foreign Polluters: By imposing fees on high-emitting producers, the bill aims to reduce America's dependence on high-emitting producers like China and Russia (Section 2(a)(13)).
-
Support for Partner Countries: Through international partnership agreements, the United States can provide support to low-income and lower-middle-income countries, including the extension of aid to support energy technology deployment and manufacturing (Section 203(a)(2)).
-
Benefits for Recycled Materials: The bill treats recycled materials as having a pollution intensity as low as zero, which can benefit those utilizing such materials in production (Section s 4694(d)(2)).
Potential Negative Impacts for People
-
Increased Costs for Importers: Importers of covered products will be required to pay an ad valorem fee upon entry, which is calculated based on the product's customs value and a variable charge (Section 4692(a)(1)).
-
Potential Economic Burden via Fees: The variable charges for certain countries can be very high; for example, the initial application table shows rates as high as 200% for products from China, Russia, and Vietnam (Section 4693(a)(1)).
-
Restrictions on Certain Facilities: Facilities located in nonmarket economy countries that are owned or controlled by a government are ineligible for facility-specific pollution intensity treatment (Section 204(e)(1)).
-
Trade Deficit and Economic Impact Risks: While the bill seeks to address these, the Secretary of the Treasury must still monitor the impact of the act on the United States trade deficit and economic activity (Section 301(a)(3)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Environment Energy And Infrastructure
- Reduces Carbon Emissions+7Improves Environmental Protections+6Increases Renewable Energy Investment+4
- National Security And Foreign Policy
- Improves International Alliances+5Increases Foreign Aid+4Improves Diplomatic Engagement+3Improves International Trade-2
- Demographic And Interest Groups
- Good For Union Workers+6Good For Business Owners+4Good For Low Income Households-2Good For Middle Class Households-1
- Economy And Finance
- Increases Job Creation+5Improves Economic Growth+3Reduces Inflation-2
- Governance And Ideology
- Increases Federal Power+4Improves Government Transparency+2
- 4/8/2025
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
Lindsey GrahamRepublican · South Carolina