U.S. Clean Competition Act (CCA): Reintroduction in the 119th Congress and the Status of Carbon Border Adjustment Deliberations
Overview
The U.S. Clean Competition Act (CCA) is a bipartisan federal bill that would impose a border carbon adjustment tariff of $55 per ton (indexed to inflation) on imported carbon-intensive products (steel, aluminum, chemicals, cement, refined petroleum, paper, etc.) that exceed the U.S. average CO2 emissions, while also imposing an equivalent charge on domestic U.S. manufacturers under a dual-incentive structure. The bill is positioned as a U.S. counterpart to the EU's CBAM and was reintroduced in the 119th Congress (S.3523 / H.R.6787) by Senator Whitehouse (D) and others in December 2025. However, as of 2026, with Republicans controlling both chambers of Congress and the administration, the bill remains at the committee review stage, and analysts view the prospects for a floor vote and early enactment under the Trump administration as low.
Enforcement Timeline
June 2022: The Clean Competition Act (S.4426) is first introduced
December 2023: A revised bill expanding covered products and strengthening alignment with the EU CBAM is reintroduced
December 2025: The bill is reintroduced in the 119th Congress as S.3523 / H.R.6787
January 2026: With the EU CBAM entering full operation, discussion of carbon border adjustment continues within the United States as well
As of August 2026: The bill remains at the committee review stage in both chambers, with the prospects for a floor vote under the Trump administration undetermined
Business Impact
Global companies exporting carbon-intensive products such as steel, chemicals, and aluminum to the United States do not face any immediate legal taxation risk, since the CCA remains an unenacted bill at this stage. However, with the EU CBAM entering full operation in 2026, bipartisan discussion of carbon border adjustment measures aimed at protecting domestic industry competitiveness continues in the U.S. market as well, and it is advisable for companies to proceed with building medium- to long-term product carbon intensity (lifecycle CO2) data management systems.
