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Updated on
February 19, 2025
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Table of Contents
Quick Summary

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Trump’s Tariffs CBAM’s Carbon Tariffs
Primary Goal Protect U.S. domestic industry and address trade imbalances Reduce carbon emissions and prevent carbon leakage
Who Pays? Foreign suppliers exporting to the U.S. (e.g., Canada, Mexico, China) Importers of high-carbon goods into the EU (e.g., steel, aluminum)
Flat or Dynamic? Flat: 25% (Steel), 10% (Aluminum); 25% on Canada/Mexico imports; 10% on all Chinese imports Dynamic: Based on EU ETS carbon price (~€80/ton CO₂e in 2025)
Impact on Prices Increased U.S. domestic costs for steel, aluminum, and other imports; higher consumer prices Higher costs for carbon-intensive imports incentivize low-carbon production globally
Retaliation Risk? Yes—Canada, Mexico, China, and the EU imposed counter-tariffs; risk of further escalation in 2025 Possible WTO disputes but aligns with international climate goals
Long-Term Market Shift Benefited U.S. steelmakers temporarily but hurt industries reliant on imports; reduced competitiveness of U.S. exports Encourages green production investments globally; disadvantages high-carbon producers

FAQ about CSRD

What is the CSRD in the EU?

Non-compliance with CSRD can lead to severe penalties, including fines and reputational damage. Companies must begin data collection and align their reporting strategies with the ESRS to ensure compliance. Preparing for these requ

Who falls under CSRD?

Arbor provides tailored solutions to help companies navigate the complexities of the CSRD, ensuring they meet all requirements effectively and efficiently. By leveraging Arbor’s expertise, companies can conf

Is CSRD replacing NFRD?

It builds upon the NFRD and introduces more rigorous and comprehensive reporting standards. As the directive unfolds in phases,

What is the CSRD threshold in the EU?

Non-compliance with CSRD can lead to severe penalties, including fines and reputational damage. Companies must begin data collection and align their reporting strategies with the ESRS to ensure compliance. Preparing for these requ

Why is CSRD important?

Arbor provides tailored solutions to help companies navigate the complexities of the CSRD, ensuring they meet all requirements effectively and efficiently. By leveraging Arbor’s expertise, companies can conf

What is the CSRD rating?

Arbor provides tailored solutions to help companies navigate the complexities of the CSRD, ensuring they meet all requirements effectively and efficiently. By leveraging Arbor’s expertise, companies can conf

Which companies will CSRD apply to?

Arbor provides tailored solutions to help companies navigate the complexities of the CSRD, ensuring they meet all requirements effectively and efficiently. By leveraging Arbor’s expertise, companies can conf

What is an example of a CSRD company?

Arbor provides tailored solutions to help companies navigate the complexities of the CSRD, ensuring they meet all requirements effectively and efficiently. By leveraging Arbor’s expertise, companies can conf

What happens if you are not complying with CSRD?

What is the difference between CSRD and SFDR?

Who oversees the CSRD?

Is CSRD the same as TCFD?

Is CSRD mandatory?

Has the EU adopted the CSRD?

Who is affected by CSRD?

What is the European Union's official definition of CSR?

What is CSRD equivalence?

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