Senator Cassidy interview on his foreign pollution fee

As a nice follow-up to @Daniel Richter's CCU last week on Opportunities for a Carbon Price in the Next Congress (if you missed it and haven't watched the recording, you should!), Politico Pro has a really interesting interview with Senator Cassidy. Since it's probably behind a paywall, I'll paste it below. Also see our previous training on this bill and Senator Whitehouse's Clean Competition Act 🤓

Republican senator says Trump could back this climate bill

Bill Cassidy of Louisiana discussed his legislation during an energy summit back home.

GREENWIRE | Louisiana Republican Sen. Bill Cassidy convened energy industry executives this month to promote an idea that historically has been derided in conservative circles: a fee on global pollution.

Cassidy held an energy summit at the Louisiana State Museum — an event that featured discussion on his "Foreign Pollution Fee Act," S. 3198, which would slap a fee on imported goods that are dirtier than their domestic counterparts. Greenhouse gases are among the pollutants targeted by the bill.

In an interview with POLITICO’s E&E News last week, Cassidy said the idea could get traction with former president and Republican presidential nominee Donald Trump as a way to counteract China.

“I’ve been trying to build the case that the U.S. enforces environmental laws and China doesn’t. It gives China a competitive advantage," Cassidy said.

"If we can equal the playing field somewhat, we make it more likely that a company expands or builds in the United States versus China."

The bill, which Cassidy introduced a year ago, would not impose a fee on products made domestically. Still, it would amount to a significant step in the fight against climate change.

“I think there’s a receptive audience,” Cassidy said when asked about his read on Trump's openness to the idea.

Never mind that Trump rejects climate change science or that Cassidy was one of seven Republican senators who voted to convict the former president following his second impeachment.

Cassidy argued the policy tool aligns with Trump economic priorities of boosting competitiveness. The senator noted that former U.S. Trade Representative Bob Lighthizer endorsed the concept in his book, “No Trade Is Free,” which supports a carbon tariff.

The Louisiana Republican also said Trump's running mate, Sen. JD Vance of Ohio, alluded to the idea during the recent vice presidential debate.

Cassidy said staff members were texting him during the debate to say, “Look, this is what we’re working on.”

Vance argued the U.S. should be focused on reshoring American manufacturing jobs to reduce global carbon emissions.

"So if we actually care about getting cleaner air and cleaner water, the best thing to do is to double down and invest in American workers and the American people," Vance said.

Even though Trump during an interview with Bloomberg called tariff “the most beautiful word in the dictionary,” it's unclear exactly what he thinks of imposing a price on foreign carbon emissions.

When asked, Trump campaign spokesperson Karoline Leavitt said, “No policy should be deemed official unless it comes from President Trump directly."

And Steven Cheung, the Trump campaign communications director, said any formal discussions of who will serve in a second Trump term are premature.

'There's momentum'

The Cassidy bill would use data showing the U.S. manufactures products like steel, aluminum and cement cleaner than abroad, particularly in China. A country would be able to enter an “international partnership” with the U.S. for lowering its emissions.

But Cassidy, who could face a tough 2026 reelection fight, has his work cut out for him to bring other Republicans on board.

Conservatives are generally concerned such a “fee” would impact U.S. prices and consumers, said Nick Loris, the vice president of public policy at C3 Solutions.

“Similar to the policy debates happening on tariffs writ large, there’s a real concern that these policies would cut against his promise to keep inflation in check and help Americans with the cost of living — all while failing to achieve the intended policy outcome,” he wrote in an email.

Currently Sen. Lindsay Graham of South Carolina is the sole Republican co-sponsor on the bill, but Cassidy said, “Everybody’s considering it because it’s a new concept."

Cassidy added, “Depending on who I’m speaking to, it’s either a China policy, an economic development policy or an environmental policy."

Greg Bertelsen, CEO of the Climate Leadership Council, a think tank that advocates for a carbon tariff, said, "There’s momentum moving in this direction."

"Few countries will do worse than China — that’s due to high carbon intensive and manufacturing,” Bertelsen said. “Even if climate is not a priority, if the outcome is this policy will create a competitive advantage to the U.S. — create a more playing field — it has appeal and it will grow."

Still, legislation much less far-reaching than Cassidy's is seeing conservative resistance. The “Providing Reliable, Objective, Verifiable Emissions Intensity and Transparency (PROVE IT) Act" would mandate a study on how U.S. products compare with foreign ones in terms of carbon emissions. Opponents say it would pave the way for a domestic carbon tax.

There has been opposition on the left, too, for trade pollution pricing legislation. Those critics say the bills wouldn’t reduce emissions much or help American communities long burdened by polluting industries.

"The environmental left doesn't like our foreign pollution fee because they feel like you have to keep on paying companies to lower their emissions,” Cassidy said during the event. But he called it the “right thing to do.”

“What we have to do is impose our values on China, and in so doing, we preserve our values and we preserve our jobs,” Cassidy said.