Trump administration has issued sharp warnings against nations supporting a proposal to impose mandatory greenhouse gas (GHG) limits and a global carbon pricing system on international shipping, calling it a ‘European-led neocolonial export of global climate regulations’.
Delegates from more than 170 countries held a meeting in London to debate the Net-Zero Framework (NZF), a proposal by the International Maritime Organization (IMO) to bring global shipping emissions to net zero by 2050. The plan would establish the world’s first global carbon levy on cargo vessels, requiring operators to report annual emissions and pay fees for exceeding limits. Ships using cleaner fuels would receive credits or rebates.
In a statement Monday, the US State Department said the administration “will not accept any international environmental agreement that unfairly burdens the United States or harms the interests of the American people,” warning that the plan would “represent the first time a United Nations organization levies a global carbon tax on the world.” The warning marks a sharp departure from previous US cooperation with the IMO, which Washington had supported in crafting early energy-efficiency and emissions-measurement standards for ships. The administration now argues that the NZF would raise costs for American consumers and exporters while handing economic leverage to European regulators.
“The economic impacts from this measure could be disastrous,” the statement said, predicting global shipping costs could rise by 10% or more. “We will not tolerate any action that increases costs for our citizens, energy providers, shipping companies, or tourists.” The statement was signed by Secretary of State Marco Rubio, Energy Secretary Chris Wright, and Transportation Secretary Sean Duffy.
The US warned that countries voting in favor of the IMO plan could face economic and diplomatic retaliation. Possible measures include, blocking vessels from entering US ports, Investigations into “anti-competitive” trade practices, visa restrictions on vessel crews from supporting nations, penalties on government contracts for shipbuilding and LNG infrastructure, additional port fees on ships owned or flagged by those countries; and sanctions on officials involved in “activist-driven climate policies.”
The global shipping industry responsible for roughly 3% of total greenhouse gas emissions has come under growing scrutiny as other sectors move toward decarbonization. Shipping accounts for more than 80% of global trade by volume, and without new regulations, emissions are projected to rise by as much as 50% by mid-century, according to the IMO. Many carriers have already begun transitioning to cleaner technologies. The world’s largest cargo ships produce about 85% of the sector’s total emissions, yet 41% of new container ships on order are designed to run on alternative fuels such as liquefied natural gas (LNG), ammonia, or methanol representing over half the total tonnage now being built.
Nearly all ocean-going ships are built outside the United States, mostly in China (51%), South Korea (28%), and Japan (15%), showing how global shipbuilding is concentrated in Asia and how any carbon levy could ripple through global supply chains. The US opposition has deepened divisions ahead of the IMO vote. European Union members, led by Denmark, Germany, and France, are among the strongest backers of the NZF, arguing that carbon pricing is essential to level the playing field and drive investment in zero-emission fuels like green hydrogen and ammonia.
By contrast, developing nations including India, Brazil, and several African coastal states have warned that mandatory emissions fees could inflate shipping costs and disproportionately hurt exporters in poorer economies. Climate advocates have urged governments not to bow to US pressure. “Shipping emissions can’t keep growing unchecked,” said one environmental policy expert in London. “A global framework is the only way to ensure accountability across borders.”
The standoff also comes amid rising trade tensions between Washington and Beijing. New US tariffs targeting Chinese-built and operated cargo vessels entering American ports are set to take effect Tuesday, while tariffs that double the cost of Chinese-made cranes and port equipment will begin November 1. China has already announced retaliatory port fees on US-flagged ships, effective October 14.
Analysts warn that failure to reach agreement at the IMO could undermine global efforts to align shipping with the Paris Agreement’s climate goals, which call for deep emissions cuts across all industries. With global trade and climate politics colliding in London, the IMO’s decision may define not just the course of shipping decarbonization, but the next front in the US-Europe divide over climate leadership.
