A United Nations (UN) proposal for a global carbon tax, which threatened to raise consumer costs, was tabled on Friday following pressure from the Trump administration.
Members of the International Maritime Organization (IMO), a UN body based in London, met this week to vote on a “Net-Zero Framework,” which would have imposed steep penalties on ship emissions. A majority of countries at the agency voted on Friday to postpone the decision for a year after the Trump administration pushed back and threatened retaliation against states supporting the measure.
“Common sense prevailed. The Trump Administration will not stand for the UN or any organization forcing American taxpayers to foot the bill for their environmental pet projects,” a senior State Department official told the Daily Caller News Foundation. (RELATED: Trump Admin To Push UN Overhaul Of ‘Haphazard And Chaotic’ Refugee Policy)
This is another HUGE win for @POTUS.
Thanks to his leadership, the United States prevented a massive UN tax hike on American consumers that would have funded progressive climate pet projects. Our country will continue to lead the way and put America FIRST.
— Secretary Marco Rubio (@SecRubio) October 17, 2025
The proposed IMO Net-Zero Framework, aimed at achieving global shipping emissions neutrality by 2050, would have imposed taxes of $100 to $380 per ton of CO2 on ships that failed to meet targets. If the global fleet fell even 10% short of the targets, costs could soar to $20 to $30 billion by 2030 and exceed $300 billion by 2035, by some estimates.
The Trump administration has warned the plan could raise global shipping costs by as much as 10%, forcing higher prices for American consumers.
“The collapse of the UN-backed shipping emissions deal is not the disaster portrayed by climate activists — it’s a victory for sovereignty over what amounted to taxation without representation,” Anthony Watts, Senior Fellow at The Heartland Institute, told the DCNF. “Shipping may account for 3% of global emissions, but it moves 90% of global trade; taxing it in the name of ‘net zero’ would have punished consumers and developing nations alike while enriching bureaucrats and consultants in Geneva and New York.”
President Donald Trump personally weighed in against the measure.
“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. We will not tolerate increased prices on American Consumers OR, the creation of a Green New Scam Bureaucracy to spend YOUR money on their Green dreams,” Trump posted on his Truth Social platform Thursday. “Stand with the United States, and vote NO in London tomorrow!”
The Trump administration had threatened that member states backing the measures could face a range of repercussions, including probes into anti-competitive practices, visa restrictions on maritime crews, commercial and financial penalties, increased port fees, and sanctions targeting officials promoting climate policies.
“Better than merely not signing a UN climate treaty is promising to punish countries that do sign. The result is no treaty. Thank you, President Trump,” Steve Milloy, senior fellow at the Energy & Environment Legal Institute and former Trump EPA transition team advisor, told the DCNF.
Frank Lasee, president of Truth in Energy and Climate, said the president’s stance helped protect consumers from “neocolonial mandates that enrich China at our expense.”
“This global carbon tax isn’t climate action; it’s economic sabotage,” Lasee told the DCNF. “Trump’s masterstroke preserves innovation, low taxes, and freedom from globalist overreach — ensuring our future remains bright without new well-funded UN mischief.”
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