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119-s-1325119th CongressWALLET

Foreign Pollution Fee Act of 2025

Sponsored By: Senator Cassidy, Bill [R-LA]

Introduced

Summary

Imposes a pollution-based import fee on covered products. The bill would create a Foreign Pollution Fee that charges importers an ad valorem fee based on a product's pollution intensity and the country where it was produced.

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  • Importers and covered entities: Importers of record would be responsible for paying the fee at the same time and through the same electronic portal as customs duties and may be required to post bonds or other security.
  • Foreign producers and countries: The Secretary would publish a Foreign Pollution Fee Table with country- and product-specific percentage charges for an initial period and then apply a three-tier system tied to pollution-intensity differences. Base charges can be doubled for nonmarket economy countries or for facilities owned by foreign entities of concern and quadrupled when both conditions apply.
  • Partner countries and low-income nations: The U.S. Trade Representative could negotiate International Partnership Agreements that lower or align fees when partners meet monitoring, reporting, and verification standards. High-income and upper-middle-income partners would have 3 years to meet IPA requirements and low-income and lower-middle-income partners would have 5 years and access to financing and technical assistance.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 0 benefits, 2 costs, 3 mixed.

New import pollution fee

If enacted, this bill would add a new ad valorem import pollution fee on covered products. You would pay the fee as customs value times a variable charge. The fee would apply to imports after six weeks from enactment. Covered products are set by 6‑digit HTS codes like steel, aluminum, cement, glass, hydrogen, and some solar and battery inputs. This would raise import costs and could raise consumer prices.

New traceability and enforcement rules

If enacted, the Secretary would issue traceability rules within 12 months. Covered importers would need entry- and supply-chain level traceability and must affirm compliance at each entry. The Commerce Secretary could find evasion, adjust variable charges, or ban imports from evaders. DHS trade enforcement would assist with investigations and enforcement.

Facility-level treatment and DoD carveouts

If enacted, CBP and EPA would set up an application for foreign facilities to seek facility-specific treatment. Facilities placed in service after enactment could qualify if they meet strict monitoring, verification, and ownership rules. Facilities owned or financed by nonmarket-economy governments or by foreign entities of concern would be ineligible. Separately, the Secretary could set the variable charge to zero for specific entries imported for Department of Defense contracts.

How pollution is measured

If enacted, the Secretary would publish methods to calculate pollution intensity within 12 months. Methods must measure pollution per ton and include direct, indirect, precursor, and transport emissions. The Secretary would publish a public Foreign Pollution Fee Table every 12 months with country and baseline pollution values. The bill would also create an Advisory Committee to advise on methods and foreign data checks.

Partnerships and phase-in rules

If enacted, the U.S. Trade Representative could negotiate International Partnership Agreements (IPAs) to reduce or align fees for partners. IPAs could delay or lower fees for partners that meet monitoring and pollution-reduction requirements. Low and lower‑middle income partners could get a five‑year no‑fee period and phased 10‑year capacity rules. The USTR may include financing and the U.S. can end reduced treatment if benchmarks are missed.

Sponsors & CoSponsors

Sponsor

Cassidy, Bill [R-LA]

LA • R

Cosponsors

  • Sen. Graham, Lindsey [R-SC]

    SC • R

    Sponsored 4/8/2025

Roll Call Votes

No roll call votes available for this bill.

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