November 15, 2016

Europe could impose carbon tax on US imports if America leaves Paris agreement

Quartz - On the campaign trail, Trump promised to remove the US from the landmark Paris Agreement, which went into force on Nov. 4, 2016. The president-elect reportedly still plans on a swift withdrawal once he settles into office after Jan. 20 (Inauguration Day in the US).

“It was reckless for the Paris agreement to enter into force before the election,” a source within Trump’s transition team for international energy and climate policy told Reuters.

Former French president Nicolas Sarkozy has reacted by calling for economic repercussions, should Trump make good on his promise. “I will demand that Europe put in place a carbon tax at its border, a tax of 1-3%, for all products coming from the United States, if the United States doesn’t apply environmental rules that we are imposing on our companies,” he said, according to Radio France Internationale.

This would be a substantial hit to exporters across the Atlantic—the US is Europe’s number-one trade partner.

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