The US Trade Representative is investigating whether the EU's Carbon Border Adjustment Mechanism unfairly penalizes American companies. CBAM took effect in January 2026 and currently covers aluminium, cement, fertilisers, hydrogen, iron and steel. Washington is also looking at EU plans to expand the tax to products like washing machines and car parts, and has asked US firms to submit comments by November 9. The probe lands as the EU argues internally over how far CBAM should go. Some lawmakers want to add solar panels and heat pumps, while others worry about higher costs. There is also a WTO dispute, opened at Russia's request, over whether CBAM violates trade rules. The outcome matters for anyone relying on carbon pricing as a tool to cut industrial emissions, because a ruling against the default value system would weaken the mechanism without formally ending it.
