‘Outraged’ Trump Tells Nations to ‘Vote No’ on Shipping’s Carbon Tax at IMO

President Donald Trump has issued a stark warning to nations supporting a global carbon tax on shipping, threatening economic retaliation as the International Maritime Organization votes on its Net-Zero Framework in London this week.

In a post on Truth Social, Trump declared the United States “will NOT stand for this Global Green New Scam Tax on Shipping, and will not adhere to it in any way, shape, or form.” The president characterized the measure as a threat to American consumers and called on member states to “vote NO in London.”

This week’s IMO extraordinary session will decide on the adoption of the Net-Zero Framework—a carbon-pricing regime targeting the international shipping sector. The package combines a tightening marine fuel-intensity standard with a priced compliance mechanism that would channel revenues into an IMO Net-Zero Fund for low-carbon rewards, infrastructure, and transition support.

In a joint statement ahead of this week’s meeting, Secretary of State Marco Rubio, Secretary of Energy Chris Wright, and Secretary of Transportation Sean Duffy declared that “President Trump has made it clear that the United States will not accept any international environmental agreement that unduly or unfairly burdens the United States or harms the interests of the American people.”

The administration warned that “the economic impacts from this measure could be disastrous, with some estimates forecasting global shipping costs increasing as much as 10% or more.” The statement characterized the NZF proposal as posing “significant risks to the global economy” and subjecting all IMO member states to “an unsanctioned global tax regime that levies punitive and regressive financial penalties.”

The U.S. outlined several potential countermeasures against nations supporting the framework, including pursuing investigations and considering potential regulations to combat anti-competitive practices from certain flagged countries and potential blocking of vessels registered in those countries from U.S. ports. The administration also threatened to impose visa restrictions including an increase in fees and processing, mandatory re-interview requirements and revisions of quotas for C-1/D maritime crew member visas.

Additional measures under consideration include imposing commercial penalties stemming from U.S. government contracts including new commercial ships, liquified natural gas terminals and infrastructure, and other financial penalties on ships flagged under nations in favor of the NZF. The administration also said it would consider imposing additional port fees on ships owned, operated, or flagged by countries supporting the framework, and evaluating sanctions on officials sponsoring activist-driven climate policies that would burden American consumers.

“The United States will be moving to levy these remedies against nations that sponsor this European-led neocolonial export of global climate regulations,” the statement declared. “We will fight hard to protect our economic interests by imposing costs on countries if they support the NZF. Our fellow IMO members should be on notice.”

Despite the U.S. threats, the European Union is standing by its support of the framework. “The EU supports ambitious global measures at International Maritime Organization (IMO) level with a view to decarbonise the shipping sector, and ensure a global level playing field,” the EU Directorate-General for Mobility and Transport stated. “The EU views the Net-Zero Framework as a significant milestone and calls for its adoption at IMO next week.”

The framework would impose charges of $100 or $380 per metric ton of carbon dioxide that ships emit above certain limits, potentially generating $10 billion to $12 billion annually in revenue.The framework would apply to ships greater than 5,000 gross tons, covering approximately 85 percent of international shipping emissions.Vessels that overshoot intensity thresholds would be required to acquire remedial units, while efficient ships could bank or trade surplus units.If adopted, the framework could enter into force in 2027.

The U.S. position contrasts sharply with industry sentiment. Major shipping associations, including liner and shipowner groups, have urged governments to pass the package. In a joint statement issued October 9, leading international maritime associations declared: “Only global rules will decarbonise a global industry. Without the Framework, shipping would risk a growing patchwork of unilateral regulations, increasing costs without effectively contributing to decarbonisation.”

Shipping accounts for approximately 90 percent of world trade and contributes roughly 3 percent of global carbon dioxide emissions.Proponents argue that a uniform price signal and enforceable standard would align shipowners, bunkering, and ports on a common decarbonization path.

The Wall Street Journal Editorial Board has also weighed in, characterizing the IMO’s proposed framework as “the ultimate in taxation without representation,” noting that “this is the first instance we can find of the U.N. claiming the ability to levy a tax—the revenues from which will be paid directly into a U.N.-controlled fund.”

Despite the U.S. warnings, backers of the framework seemed optimistic that there were sufficient votes for adoption following April’s approval in principle, though late abstentions could affect the final tally. If the framework passes, a technical group is scheduled to meet October 20-24 to finalize guidance on fuel definitions, revenue spending, and compliance rules ahead of the 2027 implementation timeline.

Subscribe for Daily Maritime Insights

Sign up for gCaptain’s newsletter and never miss an update

— trusted by our 107,297 members