China says EU's planned carbon border tax violates trade principles

The European Commission this month outlined plans to impose a Carbon Border Adjustment Mechanism on polluting goods from 2026. - Reuters

BEIJING (Reuters) China said on Monday (July 26) the European Union's plan to impose the world's first carbon border tax will expand climate issues into trade in violation of international principles and hurt prospects for economic growth.

The European Commission this month outlined plans to impose a Carbon Border Adjustment Mechanism (CBAM), or CO2 tariff, on polluting goods from 2026, forcing some companies importing into the European Union to pay carbon costs at the border on carbon-intensive products such as steel.