The EU is expanding its carbon import tax to finished metal goods

On Friday, European Union member states agreed to tighten the rules for its Carbon Border Adjustment Mechanism (CBAM), a world-first environmental tariff.

The fee will now cover hundreds of additional downstream items like washing machines and processed metal goods to prevent companies from bypassing the tax. This expansion targets "carbon leakage," where factories move production to countries with lower environmental standards to keep prices down.

Ministers also restricted the "emergency brake" clause, making it significantly harder to suspend the tax once it is fully implemented in 2028. These changes now head to final negotiations with the European Parliament to cement the EU’s strategy for a green industrial market.