USTR asks US firms what the EU carbon border levy costs them

USTR asks US firms what the EU carbon border levy costs them

8 October 2026: The Office of the United States Trade Representative has opened a public comment period on how the European Union's Carbon Border Adjustment Mechanism affects U.S. producers, workers and exports. Written comments go to docket USTR-2026-0661 on regulations.gov and must arrive by 11:59 p.m. Eastern on 9 November 2026.

CBAM requires EU importers of aluminium, cement, electricity, fertiliser, hydrogen, and iron and steel to declare the emissions embedded in what they bring in and to buy certificates priced from EU emissions trading auctions. USTR notes that the definitive regime began on 1 January 2026. EU importers do not have to start paying until September 2027, but goods imported since 1 January 2026 are already accruing obligations, and importers must keep records of embedded emissions per tonne, carbon price paid in the country of production and supplier information.

That record-keeping reaches back to U.S. suppliers. EU importers either collect company-level emissions data from the producer, which must be verified by an EU-accredited third party, or fall back on EU default values. USTR says the EU adds a mark-up to those defaults to push companies toward supplying their own data.

The notice also describes what may come next. In December 2025 the European Commission proposed extending CBAM to more iron and steel products and a new group of downstream steel and aluminium goods, with anti-circumvention rules. The Council adopted its position in June 2026 and Parliament in September 2026, and USTR says the Council would add over 300 products and Parliament approximately 400. The institutions still have to reconcile their texts in trilogue talks, which USTR says may conclude later this year.

USTR lists four topics: the current effect of CBAM on costs, regulatory burden and market access for U.S. producers, including small and medium-sized ones; the likely effect of the three expansion proposals; whether CBAM advantages or disadvantages U.S. companies against EU or third-country firms; and whether enforcement action may be appropriate. Submissions should be in Word or PDF, with business confidential material marked and a public version filed alongside. Questions go to Timothy Wedding at USTR.

Related on TrustList:

• CBP proposes bonds and a $1,000 damages floor for low-value imports

Sources

• Federal Register: USTR request for comments on the EU CBAM (2026-20615), 8 October 2026