The Foreign Pollution Fee Act of 2025 creates a new import fee on covered products—including aluminum, cement, steel, fertilizers, glass, hydrogen, solar products, and battery inputs—based on their country of origin and how polluting their production was, with fees ranging from 5 to 100 percent of the product's customs value and taking effect six weeks after enactment. The fee structure imposes preset country-of-origin fees (ranging from 0 percent for some European nations to 200 percent for China and Vietnam) plus variable fees based on pollution intensity, with higher penalties for products from nonmarket economies and foreign entities of concern, though the law exempts domestic products and Department of Defense contracts. The Secretary of Commerce must develop transparent methods to calculate pollution intensity within 12 months using emissions data, satellite information, and facility reports, while allowing countries to submit alternative data and offering fee reductions for nations meeting international partnership agreements and low-income countries (which receive a five-year exemption period). U.S. Customs and Border Protection will collect the fees alongside regular tariffs, and the Treasury Secretary must report annually to Congress on how the law affects domestic manufacturers' competitiveness and trade deficits, with a full policy assessment every two years.
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