The Office of the United States Trade Representative (USTR) has announced that it has launched a public consultation to assess the current and potential impact of the EU's Carbon Border Adjustment Mechanism (CBAM) on US producers, workers, exports and overall trade with the EU.
According to the notice, USTR is seeking comments on the costs, regulatory requirements and market access challenges associated with CBAM, particularly for small and medium-sized businesses. The consultation also covers the potential effects of the EU's proposed expansion of CBAM to additional downstream steel- and aluminum-intensive products. Interested parties have until November 9, 2026, to submit their comments.
Evidence of CBAM compliance costs and competitive disadvantages sought
USTR is requesting information on whether CBAM places US companies at a competitive disadvantage or provides advantages compared with EU producers or suppliers from third countries. The agency is also seeking evidence of additional compliance costs, changes in production processes, reduced market access, lost sales and employment impacts.
Submissions may include economic analyses, trade values, affected products and recommendations for modifying CBAM. In addition, USTR has invited comments on whether CBAM constitutes a trade barrier and what enforcement action, if any, could be appropriate to address its negative effects on US producers and exports. The information collected will inform further engagement between the US government and the EU regarding CBAM and its proposed expansion.
