World News for Students of English

07-01-2026 07:00

From 1 January 2026, imports of steel, aluminium, cement, and similar goods to the European Union have to pay a new carbon border tax.

The rule links the price of imports to the CO2 released during production. The EU says this step protects European companies that already face strict climate rules and helps keep competition fair. Importers have to buy certificates that match the carbon level of the goods, with prices close to the EU carbon market.

The new tax has caused strong reactions outside the EU. The United States, China, India, Russia, and South Africa say the law hurts trade and acts like protectionism. Some countries question if the rule follows World Trade Organization rules. The US already raised tariffs on EU goods and warned about more trade conflict.

The EU says the tax will push cleaner production around the world and stop companies from moving to countries with weaker rules. The EU also plans to use part of the tax money to support its industries during this change.

Difficult words: competition (when people or companies try to do better than others to win customers or success), protectionism (when a country makes rules to protect its own businesses from foreign companies), tariff (a tax a country adds to goods coming from other countries).

You can watch the video news lower on this page.