Could tariffs fight climate change? [Video]

Tariffs are a hot topic these days. U.S. president-elect Donald Trump says he’s a “big believer in tariffs,” and has threatened a 25 per cent tariff on products from Canada and Mexico unless they curb the flow of drugs and migrants across the border. 

Trump says tariffs are a “a powerful tool not only economically, but also for getting other things outside of economics.”

Could that include getting countries to cool the planet?

Canada and the U.S. are among those discussing carbon tariffs or carbon border adjustments as a way to protect local industry and achieve climate goals at the same time.

But do they work? Where are they being implemented? And what will that do to trade and the cost of living?

Here’s a closer look.

What is a carbon tariff?

A tariff is a tax or duty on goods and services imported from another country, often based on the value of the imports. The goal is typically to raise the price of imports relative to domestically produced …