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2025-12-17 16:35:07
[EU Carbon Tax Strikes Again: Downstream Industries, Capital Flows, and Market Competition] ⑴ The European Commission's latest proposal expands the carbon border tax to include imported washing machines and machinery, targeting downstream steel and aluminum-intensive products, aiming to prevent production relocation to circumvent its climate policies. ⑵ The proposal plans to allocate 25% of the carbon border tax revenue between 2026 and 2027 to establish a fund supporting EU industrial development, directly funding industrial transformation. ⑶ To prevent tax evasion, the European Commission proposes a new system that uses default national emission values for calculations when importer data is unreliable, increasing the rule's enforceability. ⑷ This expansion of the tax scope directly increases import costs for related manufacturing industries, potentially impacting global supply chain layouts and boosting the competitiveness of related industries within the EU. ⑸ The market needs to pay close attention to the legislative process and implementation details of this proposal, as it will have a lasting impact on global trade flows, related corporate profits, and the size of European industrial funds.
