For example, a tariff that considers carbon emissions in the production of a given unit of steel would help protect the domestic steel industry from foreign competitors’ cheap, high-emissions steel.
This could include investment tax credits for revamping steel-production facilities to use clean technologies and production tax credits for making domestic clean steel, spurring private investment across the steel industry.
Tariffs are necessary for correcting distortions in global trade but are a poor tool for catalyzing the kind of investment needed for the long-term viability of the American steel industry, which needs to transition to clean technology to remain competitive globally.
For example, expanding the Biden administration’s “Buy America” requirements for federally funded projects, such as highway and bridge construction, to include domestically produced, 100% clean steel would strengthen demand for US-produced steel.
Revenue from this tariff – and others – could help our steel industry transition to clean technologies and accelerate the industry’s modernization.
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