Cassidy, Graham Introduce Latest Version of Trade Manufacturing Policy to Hold China Accountable

April 16, 2025

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(Office of Senator Bill Cassidy, M.D. (R-LA)) U.S. Senators Bill Cassidy, M.D. (R-LA) and Lindsey Graham (R-SC) introduced the latest version of the Foreign Pollution Fee Act to level the playing field for American manufacturers and workers by holding non-market economies like China accountable for their unfair trade practices. The legislation puts America’s efficient manufacturers at the center of industrial strategy, strengthening our economic resilience, reducing supply chain dependence on adversaries, and rewarding innovation in production. The original Foreign Pollution Fee Act was updated this year to incorporate feedback received during a public comment period.

“Other countries can decrease their cost of manufacturing by 20 percent by not enforcing the laws we take for granted. This means they take our jobs too. This is wrong,” said Dr. Cassidy. “It’s time the U.S. promotes fair trade, preserves jobs in Louisiana and elsewhere, and revives American manufacturing. That helps fulfill President Trump’s goal of rebuilding the Golden Age.”

“It is long past time that the polluters of the world, like China and others, pay a price for their policies. This bill calls out the foreign polluters and rewards American businesses who are doing the right thing,” said Senator Graham. “We are leveling the playing field, and American manufacturers and business will be the biggest beneficiaries.”

The Foreign Pollution Fee Act:

Combats China’s Exploitation of Trade Rules: This policy will level the playing field for U.S. businesses by countering the unfair practices of non-market economies like China, ensuring American manufacturers can compete and thrive.
Strengthens Global Supply Chain Resilience: Diversifying trade relationships will reduce dependence on adversarial nations, making supply chains more secure against geopolitical disruptions and enhancing national security.
Revitalizes American Manufacturing: By discouraging imports of pollution-intensive goods, this policy will bring jobs back home, strengthen domestic industries, and reduce reliance on foreign suppliers.
Expands U.S. Export Markets: As high-polluting countries modernize their industries, they’ll increasingly demand American-made inputs, feedstocks, and cutting-edge technologies, opening new opportunities for U.S. exports.
Deepens Trade Ties with Allies: By promoting partnerships with nations that share our economic and environmental values, this policy builds a coalition against predatory practices by the Chinese Communist Party, supporting emerging markets and allies alike.
Rewards Leadership in Cleaner Manufacturing: The policy incentivizes international partners to adopt cleaner production methods while ensuring that domestic manufacturers maintain a competitive edge by continuing to lead in industrial decarbonization.

Industry sectors covered by the Foreign Pollution Fee Act include iron, steel, aluminum, cement, glass, fertilizer, hydrogen, solar components, and certain battery inputs.

Click here for a one-pager, here for a section-by-section, and here for a FAQ document on the Foreign Pollution Fee Act.

Background

Cassidy and Graham introduced an earlier version of their Foreign Pollution Fee Act to level the playing field with Chinese manufacturing and expand American production in 2023. Earlier this year, Cassidy released a new video featuring vocal support from several of President Trump’s Cabinet nominees for the Foreign Pollution Fee Act.

The Foreign Pollution Fee Act was a key topic at Cassidy’s Louisiana Energy Security Summit in October 2024.The summit featured ten panels that explored protecting U.S. interests from unfair trade practices, Louisiana’s low-pollution manufacturing advantage, and the role of natural gas in strengthening U.S. geopolitical influence. Panelists included presidents and CEOs from Entergy, First Solar, Buzzi UnicemUSA, Orsted, and Aluminum Technologies, former Trump administration officials, and leaders from Louisiana trade associations and major energy and Fortune 500 companies.

In September 2024, he released the 3rd episode of Bill on the Hill, where he highlights his Foreign Pollution Fee Act and discusses China’s growing economy and military coming at the expense of the American worker. After hearing fellow Americans share their concerns, Cassidy presented his plan to address the nexus between economic development, national security, and the environment.

He penned editorials in Foreign Affairs, The Washington Times, and jointly in the USA Today Network discussing the geopolitical threat that China poses to U.S. global standing.

In 2023, the Louisiana Senate and House of Representatives unanimously adopted a resolution urging Congress to pursue an industrial manufacturing and trade policy to counter competition from China.

The Foreign Pollution Fee Act is supported by a variety of key industry and advocacy stakeholders including: Steel Manufacturers Association, U.S. OCTG Manufacturers Association (USOMA), Portland Cement Association, Solar Energy Manufacturers for America (SEMA) Coalition, Ultra Low Carbon Solar Alliance, America First Policy Institute, Carbon Removal Alliance, Heirloom, Climeworks, Climate Leadership Council, Cleaner Economy Coalition (CEC), the Industrial Innovation Initiative (I3), Rainey Center Freedom Project, RepublicEN.org, Carbon Upcycling, Ceres, SAFE’s Center for Strategic Industrial Materials, Citizens’ Climate Lobby, ElementUSA, and Evangelical Environmental Network.

“The Steel Manufacturers Association thanks Senator Cassidy and Senator Graham for introducing the Foreign Pollution Fee Act. This critical legislation will provide another strong path to ensuring fair trade. America has a tremendous competitive advantage because of its lower emissions manufacturing processes. We make the cleanest steel in the world. This is because the United States lets markets choose the most efficient production technologies and raw materials. However, poor overseas environmental standards, compliance, and enforcement creates an artificial advantage in trade that harms American producers and workers,” said Philip K. Bell, President of the Steel Manufacturers Association. “Current U.S. trade countermeasures are not specifically designed to address unfair trade practices related to the environment. Imposing a fee on foreign pollution helps monetize our environmental advantage and level the playing field. We look forward to working with Senators Cassidy and Graham on the Foreign Pollution Fee Act to support American jobs and competitiveness.”

“The SEMA Coalition supports Senator Cassidy’s 2025 Foreign Pollution Fee Act. For American solar manufacturers to compete on a level playing field and outcompete China, we need innovative border measures such as a foreign pollution fee. Any successful, long-term strategy to reshore the solar value chain must prioritize taking these steps to safeguard the domestic solar industry from the impacts of global overcapacity,” said Mike Carr, Executive Director of the SEMA Coalition. “We are grateful for Senator Cassidy’s leadership and look forward to working closely with him and the administration to advance trade and tax policies that ensure a level playing field with China and longevity for U.S. solar manufacturers and workers.”

“The Ultra Low Carbon Solar Alliance congratulates Senators Cassidy and Graham on the introduction of the Foreign Pollution Fee Act of 2025 and is proud to endorse the bill. The members of the Alliance are demonstrating that with the right policy mix U.S. manufacturers can claw back critical energy supply chains in the face of Chinese over subsidization and product dumping,” said Michael Parr, Executive Director of the Ultra Low Carbon Solar Alliance. “In recent years we have begun to re-establish U.S. solar manufacturing at scale, providing a secure supply of U.S. energy generation, bolstering U.S. energy dominance and security. Because solar manufacturing in China is twice as polluting as in the U.S., the Foreign Pollution Fee Act will provide a critical backstop against China’s ongoing efforts to evade U.S.tariffs, helping to ensure that America’s fastest growing form of energy generation continues to use U.S. made solar products.”

“The cement industry supports policies that protect domestic manufacturers through robust trade mechanisms and data collection. Sen. Cassidy’s Foreign Pollution Fee Act is very thoughtful, pragmatic legislation that will highlight the carbon advantage of U.S. manufacturers and level the playing field against more carbon-intensive foreign imports,” said Sean O’Neill, Senior Vice President of Government Affairs for Portland Cement Association.

“The Foreign Pollution Fee Act would create a fairer market for domestic manufacturers and foster innovation in the U.S.,” said Giana Amador, Executive Director of the Carbon Removal Alliance. “We commend Senator Cassidy for his leadership in protecting American entrepreneurs and advancing a homegrown carbon removal industry poised to generate jobs and billions in economic growth nationwide.”

“In the global race to lead the industries of the future, it’s wrong to let U.S. manufacturers be undercut by countries that ignore the high standards our businesses uphold,” said Vikrum Aiyer, Head of Public Policy for Heirloom. “The Foreign Pollution Fee Act levels the playing field and makes it a fair fight—and in a fair fight, America wins, thanks to homegrown innovations like direct air capture that can mitigate the impact of our competitors flouting environmental standards, all while ensuring America remains the most competitive place in the world. We’re proud to be investing in such technologies in Louisiana to produce new energy solutions and carbon management tools, creating thousands of jobs to service nearly half a billion dollars in customer contracts and growing, as we onshore U.S. innovation to leverage the American advantage and strengthen our energy security.”

“The Foreign Pollution Fee Act is an important way to protect and expand U.S. manufacturers’ strategic advantage in meeting rising global demand for decarbonized goods and services. Climeworks is proud to support Senator Cassidy’s initiative, which we believe will strengthen vital supply chain resilience,” said Daniel Nathan, Chief Project Development Officer for Climeworks.

“ElementUSA strongly supports your foreign pollution fee legislation, which levels the playing field for responsibly produced domestic minerals. By incentivizing cleaner supply chains, this policy directly advances our mission to reprocess industrial waste and reshore critical minerals using low-emission technologies. It empowers U.S. innovators like us to compete globally while turning legacy environmental liabilities into valuable, sustainable resources,” said Chris Young, Chief Strategy Officer for ElementUSA.

“Senator Cassidy’s introduction of the Foreign Pollution Fee Act is a significant step forward in capitalizing on U.S. industry’s superior environmental performance and creating a more level playing field for years to come. By rewarding American firms for their lower pollution and holding higher emitters accountable, we will boost U.S. manufacturers, create more jobs, and secure critical supply chains,” said Greg Bertelsen, CEO for Climate Leadership Council. “The Council looks forward to working with Senator Cassidy and a growing coalition of stakeholders to advance a foreign pollution fee as a tool for leveraging America’s carbon advantage, strengthening the U.S. economy, and reducing global emissions.”

“Citizens’ Climate Lobby welcomes the re-introduction of the Foreign Pollution Fee Act by Senator Bill Cassidy (R-LA) and Senator Lindsey Graham (R-SC). Foreign polluters should be held accountable for the climate impacts of their exports to the U.S., and this bill takes a critical step in ensuring that imported goods reflect their true carbon cost. By requiring robust emissions accounting for foreign imports, the legislation promotes transparency and fairness in global trade. We are pleased to see this important bill reintroduced and our grassroots volunteers nationwide will be working toward its passage in Congress,” said Jennifer Tyler, VP of Government Affairs for Citizens’ Climate Lobby.

“As a consensus-based coalition of industry, labor, and nonprofit leaders, the Industrial Innovation Initiative (I3) applauds Senator Cassidy’s ongoing commitment to American industry and congratulates him on this comprehensive effort to prioritize American workers, U.S. manufacturing, and a strong economy while reducing industrial emissions,” said David Soll, Industrial Decarbonization Manager for Great Plains Institute.

“Senator Cassidy’s Foreign Pollution Fee is a bold America First solution that puts U.S. workers and manufacturers first—not China. It’s time we stop rewarding hostile regimes for cutting corners and start leveling the playing field for the American companies doing it right,” said Sarah Hunt, President for Rainey Center Freedom Project.

“The Foreign Pollution Fee Act would bring accountability for dumping trash into the sky. That accountability would simultaneously level the playing field and spawn worldwide innovation,” said former U.S. Representative Bob Inglis (R-SC-04), Executive Director for RepublicEN.org.

“The Foreign Pollution Fee Act aims to support the U.S. cement industry’s continued investment in innovative production technologies that lead to cleaner, more sustainable building materials,” said Juliane Kniebel-Huebner, COO for Carbon Upcycling. “We are grateful for Senator Cassidy’s leadership and look forward to working with him and our industry partners to continue to bolster the competitiveness of U.S. cement manufacturers.”

“Ceres applauds the introduction of a foreign polluter fee in the U.S. Senate as a fair, predictable, and congressionally approved approach to global trade. This legislation would leverage U.S. trade and industrial policy to ensure the nation’s leadership in clean manufacturing and other key 21st century industries remain an advantage against China and other competitors, to the benefit of U.S. economic, geopolitical, and national security interests,” said Zach Friedman, Senior Director of Federal Policy for Ceres.

“For too long, American industry has been competing on an uneven playing field on the global stage while bad actors like the Chinese Communist Party have adhered to unacceptably low standards to outcompete us on cost,” said Joe Quinn, Executive Director of SAFE’s Center for Strategic Industrial Materials. “By turning that uneven playing field into a competitive advantage for industries like batteries, steel, and aluminum that are critical to both national and energy security, the Foreign Pollution Fee Act will make the U.S. more self-reliant and restructure markets to reward innovation, not pollution.”

“The Foreign Pollution Fee Act of 2025 delivers a three-fold win, defending the health of our children from harmful pollution, protecting the livelihoods of American workers, and leveling the playing field for American firms leading the way in clean manufacturing. The majority of products named in the Foreign Pollution Fee Act are powered by or directly utilize mercury-containing coal for production. While the United States reined in harmful mercury pollution a decade ago, other countries like China have no such protections on the books. China is responsible for 25-30% of the world’s mercury emissions, and unfortunately, air pollution doesn’t recognize national boundaries. Mercury pollution from coal combustion in China travels across the Pacific and is deposited in American oceans, lakes, and streams, resulting in widespread fish consumption advisories and continued risk of mercury-induced brain damage to our children, especially those in Alaska and our Western states. The Foreign Pollution Fee Act will help create the healthy environment and bright future that all God’s children, both here in the United States and across the world, deserve by ensuring foreign manufacturers finally clean up their act. On behalf of our children, we thank Senators Bill Cassidy (R-LA) and Lindsay Graham (R- SC) for their leadership advancing this critical bill,” said Reverend Dr. Jessica Moerman, President & CEO for the Evangelical Environmental Network.

“Senator Cassidy’s introduction of the Foreign Pollution Fee Act opens the door for Congress to advance a critical tool for supporting American manufacturers—who are among the cleanest and most innovative in the world. A foreign pollution fee would create a fairer playing field for U.S. manufacturers, driving demand for cleaner, U.S.-made products and holding the worst global environmental actors accountable,” said CEC. “The Cleaner Economy Coalition looks forward to working with Senator Cassidy and other policymakers to advance a foreign pollution fee.” READ MORE