Carbon Border Adjustment Tax — Plain-English Explanation
Bill: H.R. 6787Sponsor: Suzan DelBene (D-WA)
In short: This bill would create a tax on imported products based on how much carbon pollution was produced when making them. The tax would apply at the U.S. border to help level the playing field between American products and foreign products.
What does Carbon Border Adjustment Tax do?
- This bill would create a tax on imported products based on how much carbon pollution was produced when making them. The tax would apply at the U.S. border to help level the playing field between American products and foreign products.
- The bill uses 'carbon intensity' to measure how polluting a product is—essentially charging more for dirtier imports and potentially less for cleaner ones. It amends the tax code to add this new border adjustment mechanism.
Why does Carbon Border Adjustment Tax matter?
- This would affect businesses that import goods into the U.S., manufacturers competing globally, and ultimately consumers who may see price changes on imported products. Foreign companies selling to America would need to account for their products' carbon footprint.
- The bill addresses concerns that U.S. companies face stricter environmental rules than foreign competitors, which some argue puts American businesses at a disadvantage. It's designed to encourage cleaner manufacturing practices worldwide while protecting domestic industries.
What happens next with Carbon Border Adjustment Tax?
- The bill was just introduced on December 17, 2025, and is being reviewed by three House committees (Ways and Means, Energy and Commerce, and Foreign Affairs).
- Contact your House representative to share your views on whether taxing carbon in imports is good for your community's economy and environment.
Primary Sponsor
Legislative Timeline
Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, and Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, and Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, and Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced in House
Introduced in House