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OPINION

Trump's Triumph: Derailing the UN's Global $13 Billion Carbon Tax Slush Fund

The opinions expressed by columnists are their own and do not necessarily represent the views of Townhall.com.
AP Photo/Andrew Harnik

Hurray for President Trump's bold leadership in torpedoing the UN's disastrous shipping emissions scheme—a resounding victory for American sovereignty and economic strength! By spearheading the pushback that delayed the International Maritime Organization's (IMO) Net-Zero Framework until they take it up next fall, Trump has spared us the immediate imposition of a world carbon tax.

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This "Global Green New Scam Tax" would have hiked freight costs by 10% or more, inflating prices on everything from groceries to gadgets while costing thousands of U.S. jobs. No funneling $11-13 billion annually into an unaccountable UN "green slush fund" for bureaucrats' pet projects and wealth transfers. At least for now.

These carbon tax funds dwarf the UN's regular operations budget of about $3.7 billion and exceed its combined regular and peacekeeping totals of around $9.1 billion.

Let's be clear: this isn't about saving the planet. It's really about creating a world CO2 tax and a $13 billion slush fund for bureaucrats, making everything more expensive.

Picture this: Every cargo ship carrying everything from Colombian coffee to Chinese iPhones gets slapped with fees of $100 to $380 per ton for CO2 emissions. Shipping hauls 90 percent of world trade and generates just 3 percent of global CO2 emissions, yet this tax could jack up costs dramatically, according to U.S. State Department estimates.

That's not hyperbole; it's a direct hit to American consumers, causing inflation by driving up prices on essentials and luxuries alike. In manufacturing heartlands like the Midwest, industries reliant on affordable imports and exports would suffer, leading to job losses and higher costs for farmers shipping food overseas. This is economic sabotage masquerading as climate action.

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Worse still, the scheme would channel $11–13 billion yearly into an unaccountable UN fund. This would create the world's first UN-imposed global carbon tax, which prioritizes European green agendas that are wearing thin with Europeans because of job losses and increased energy and food costs. It strengthens Chinese dominance in "clean" fuels and ship retrofits produced with coal power, forced labor, and lax environmental standards.

While shipping emissions from this tax fail to deliver meaningful emissions cuts (only 8 percent of the 3 percent world emissions by 2030), it threatens 0.1–0.16% GDP losses globally. UNCTAD studies show even a $150–$300 levy could shave 0.08–0.09% off world GDP, with the U.S. footing up to 20 percent of revenues despite handling just 11% of trade value, thanks to our longer transoceanic routes. This means that US consumers and businesses would be paying $2-3 billion of this tax, and we will almost certainly see this tax go up in the future.

It's taxation without representation, echoing the grievances that birthed our nation. We'd pay to fund an unaccountable UN organization with no say over how billions are spent or to whom they're doled out. The UN's track record of favoritism and corruption makes this even more egregious. And for what? It will make no difference to the world’s temperature—the supposed goal—and could shift trade to dirtier land routes exempt from the tax.

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The framework's unattainable fuel standards would force massive retrofits (most likely done by the Chinese), slamming small U.S. vessels with millions in fees and driving up energy, transport, and even leisure cruise costs. Pacific islands push this as equity, but it's neocolonialism: they get the cash, we get the bill.

The U.S. walked out of IMO talks in April, rejecting the framework amid opposition from 16 nations and 24 abstentions. At the extraordinary MEPC session in London (October 14-17, 2025), the vote loomed, needing a two-thirds majority. But thanks to Trump's firm stance—threatening retaliatory tariffs, port fees, and visa restrictions—the IMO delayed the adoption until the fall of 2026.

In joint statements from Secretaries Rubio, Lutnick, Wright, and Duffy, the administration vowed "reciprocal measures" against sponsors of this European-led scheme, from trade leverage to blocking visas for IMO envoys. Senators Rick Scott and Ashley Moody echoed this, urging action to shield U.S. trade and security.

This October delay isn't minor; it's a sovereignty battle. If adopted, it would bind 97 percent of global tonnage by 2027, but U.S. threats rattled vulnerable nations, turning the tide. IMO Secretary-General Arsenio Dominguez claimed consensus, but reality proved otherwise.

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Trump's masterstroke preserves innovation, low taxes, and freedom from globalist overreach and stops a $13 billion slush fund with little accountability. Ensuring our future remains bright without new well-funded UN mischief.

Contact your congressmen and demand that they sink this ship for good. America didn't win independence to fund foreign fantasies. Let's keep taxes low, innovation big, and our future unshackled from the UN's wet blanket.

Editor’s Note: The Schumer Shutdown is here. Rather than put the American people first, Chuck Schumer and the radical Democrats forced a government shutdown for healthcare for illegals. They own this.

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