EU Backs Shipping’s Net-Zero Framework as U.S. Threatens Trade Retaliation Ahead of Historic Vote
Mike Schuler October 13, 2025

The European Union has reaffirmed its support for the International Maritime Organization’s Net-Zero Framework ahead of a critical vote this week, defying stark warnings from the Trump administration that nations supporting the measure could face punitive economic countermeasures.

The IMO’s extraordinary session (MEPC E.2) is scheduled for October 14-17, where member states are expected to vote on adopting the Net-Zero Framework—a carbon-pricing regime targeting the international shipping sector. The package combines a tightening marine fuel-intensity standard with a priced compliance mechanism that would channel revenues into an IMO Net-Zero Fund for low-carbon rewards, infrastructure, and transition support.

In a joint statement issued last Friday, Secretary of State Marco Rubio, Secretary of Energy Chris Wright, and Secretary of Transportation Sean Duffy declared that “President Trump has made it clear that the United States will not accept any international environmental agreement that unduly or unfairly burdens the United States or harms the interests of the American people.”

The administration warned that “the economic impacts from this measure could be disastrous, with some estimates forecasting global shipping costs increasing as much as 10% or more.” The statement characterized the NZF proposal as posing “significant risks to the global economy” and subjecting all IMO member states to “an unsanctioned global tax regime that levies punitive and regressive financial penalties.”

The U.S. outlined several potential countermeasures against nations supporting the framework, including pursuing investigations and considering potential regulations to combat anti-competitive practices from certain flagged countries and potential blocking of vessels registered in those countries from U.S. ports. The administration also threatened to impose visa restrictions including an increase in fees and processing, mandatory re-interview requirements and revisions of quotas for C-1/D maritime crew member visas.

Additional measures under consideration include imposing commercial penalties stemming from U.S. government contracts including new commercial ships, liquified natural gas terminals and infrastructure, and other financial penalties on ships flagged under nations in favor of the NZF. The administration also said it would consider imposing additional port fees on ships owned, operated, or flagged by countries supporting the framework, and evaluating sanctions on officials sponsoring activist-driven climate policies that would burden American consumers.

“The United States will be moving to levy these remedies against nations that sponsor this European-led neocolonial export of global climate regulations,” the statement declared. “We will fight hard to protect our economic interests by imposing costs on countries if they support the NZF. Our fellow IMO members should be on notice.”