The US Trade Representative has opened a formal probe into the EU's Carbon Border Adjustment Mechanism, which took effect in January 2026 for aluminium, cement, fertilisers, hydrogen, iron and steel. Washington argues the system creates financial liabilities for American exporters and is seeking public comment on costs, regulatory burden, and market access until November 9. The review comes as the WTO agreed to a Russia-requested panel on CBAM's legality. Inside the EU, governments and Parliament are split over expanding CBAM to more products such as washing machines and car parts. MEPs want solar panels and heat pumps included too, while the Council is more cautious. Negotiators are also fighting over default carbon values and whether to allow temporary exemptions in serious circumstances. The Irish Presidency wants a deal by October 20.
