Analysis – U.S. Tariffs Would Chill Climate Pact and Trade

(Reuters – Timothy Gardner)

Any threat by the United States to slap fees on imports from countries it perceives as weak on cutting carbon emissions could hamper trade relations and delay international efforts to combat global warming.

Lawmakers in states that produce cement, chemicals, steel and other energy-intensive products have called for such tariffs in climate legislation. They fear those industries looking to cut regulation costs could pull up stakes and move to countries that don't have strong climate plans.

But experts say the tariffs may do more harm than good.

“One of the big problems is retaliation,” said Jeffrey Frankel, professor of capital formation at Harvard University's Kennedy School of Government. “Other countries will say 'If the U.S. is doing it, we'll put up our own trade barriers.'“ Read more here.