Senators Warn Proposed Maritime Levy Poses Threat to U.S. Economic Competitiveness, National Security
In a push to protect U.S. trade and national security, Florida Senators Ashley Moody and Rick Scott have formally urged the Trump administration to actively block a global carbon-pricing proposal from the International Maritime Organization (IMO).
The senators’ appeal comes ahead of a key vote at the IMO’s Marine Environment Protection Committee (MEPC) session scheduled for this October.
According to a letter addressed to Commerce Secretary Howard Lutnick and Secretary of State Marco Rubio, the senators expressed concern that the proposed framework would disproportionately harm American interests. They contend that the tax, which is designed to reduce greenhouse gas (GHG) emissions from international shipping, would place an “unfair burden” on U.S. businesses and consumers.
Disproportionate Financial Burden
The senators’ letter outlines a critical point of contention: the financial impact on the United States. While the U.S. accounts for approximately 11% of global trade by value, it is projected to contribute roughly 20% of the IMO’s total tax revenue. This disparity is attributed to the longer distances of U.S. trade routes compared to those of European or Asian nations.
Moody and Scott estimate that American producers and consumers could face a tax burden of nearly $1 trillion between 2028 and 2035. They argue that this system represents “taxation without representation” because the U.S. would have no influence over the policy and would receive none of the revenue generated.
A Threat to U.S. Maritime Dominance
Beyond the economic strain, the senators warn the IMO proposal could threaten U.S. maritime dominance. They suggest that countries supporting the framework, particularly China, stand to benefit by forcing the premature retirement of vessels and strengthening their control of the global shipbuilding industry. Major foreign carriers from Europe and Asia, which already dominate the majority of the world’s container capacity, have reportedly embraced the regulatory burden as a “profit center,” aligning their investments to gain a competitive edge over U.S. operators.
The letter asserts that the proposal is a “wealth redistribution plan” that provides no meaningful environmental benefits, and could even create unintended economic distortions by shifting cargo away from U.S. short-sea shipping to land-based transport, which remains exempt from the carbon tax.
Call for Immediate Action
Acknowledging a recent statement from the Trump administration rejecting the proposal, the senators’ letter pushes for a more aggressive stance. They urge the administration to “immediately apply trade leverage” to block the framework.
“This is a historic opportunity not only to stop the IMO carbon tax, but to restore our influence in global maritime policy and rapidly reassert American global maritime dominance,” the letter concludes. “The stakes for American workers, our industries, and our national security could not be higher.”
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