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US Fails to Block Shipping Carbon Tax

Financial Times Companies •
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The Trump administration's aggressive diplomatic tactics have failed to derail a global carbon pricing scheme for shipping at the International Maritime Organization. Despite threats of trade tariffs and targeted measures against officials, nearly 60 countries continue backing the IMO's Net Zero Framework, which would impose carbon levies on vessels exceeding emissions benchmarks. US opposition reflects its limited influence in commercial shipping, where American-owned ships constitute less than 3% of the global fleet.

The debate has transformed IMO meetings from technical discussions into a major climate policy battleground. The EU, UK, Brazil, and vulnerable developing nations support the framework, while the shipping industry itself prefers global regulation over a patchwork of regional approaches. Trump attacked the plan as a "Global Green New Scam Tax" on Truth Social, revealing how the issue has become politicized despite its technical nature.

Washington has proposed an alternative framework with no economic penalties and no fuel type preferences. Yet momentum continues toward a global carbon pricing system, with the US now engaging rather than simply blocking. The administration's realization it cannot completely derail the process suggests shifting dynamics in climate diplomacy, particularly as the US stands to benefit from increased LNG and biofuel exports under a cleaner shipping regime.