The United States and the European Union are considering new tariffs on Chinese steel and aluminium as part of a bid to fight carbon emissions, according to a report by Bloomberg News.

China, which produces more than half of the world's steel, is accused by the EU and United States of creating ‘over-capacity that is threatening the survival of their own steel industries.’

The new framework is mainly aimed at China, along with other large polluting nations, as stated in the report.

US trade representative Katherine Tai and her team had presented the framework to European Commissioner Valdis Dombrovskis and others in Prague in late October, however, EU officials then raised the issue of legality and compatibility with World Trade Organization rules, as well as with the bloc's internal carbon pricing mechanism, the report said.

China currently exports low amounts of steel and aluminium to the United States, with most products excluded from the market by anti-dumping duties as well as trade tariffs.

Source: Bloomberg News