The Foreign Pollution Fee Act of 2025 creates a new fee on imported products based on how polluting they are to make. Starting six weeks after the law passes, when companies import certain materials and products into the U.S., they'll have to pay an extra fee calculated as a percentage of the product's value. The fee amount depends on how much more polluting the imported product is compared to the same product made in America.

The law targets specific industries: aluminum, steel, cement, fertilizers, glass, hydrogen, solar products, and battery materials. If a foreign product is only slightly dirtier than American versions (10-20% more pollution), the fee ranges from 5-25%. If it's moderately dirtier (20-200% more pollution), the fee jumps to 25-80%. Products that are extremely polluting (more than 200% dirtier) face fees up to 100% or higher. Products from countries without market economies or controlled by foreign entities of concern face multiplied fees. The law also allows companies to reduce their pollution scores by capturing carbon or buying verified carbon removal credits.

The goal is to level the playing field for American manufacturers who spend heavily on environmental compliance while competing against foreign companies with weaker pollution standards. The law specifically mentions China and Russia as examples of countries whose products are significantly more polluting. The Treasury Department will work with the Environmental Protection Agency and other agencies to calculate how polluting each product is based on its country of origin, and these calculations will be refined over time. Companies can challenge the pollution ratings by providing their own verified data, and the law includes an advisory committee of industry experts and scientists to help ensure the calculations are fair and accurate.