Canada is facing a carbon tariff threat from the European Union within months as the economic bloc fully implements its Carbon Border Adjustment Mechanism (CBAM).
According to internal documents CBC News obtained through an access to information request, Canadian iron, steel and aluminum are not exempt from the carbon tariff even with Canada’s national price on carbon and its decade-old trade deal with the European Union.
The memo from Global Affairs Canada signed on Dec. 10, 2025, describes the CBAM as a “border charge” or “effectively a ‘carbon tariff.'”
