Dense smoke from Canadian wildfires is once again choking U.S. cities. President Donald Trump has accused Canada of failing to maintain its forests and has threatened to impose “pollution” tariffs on that country’s exports in response to the health and economic damages inflicted on the public. Michigan Republicans have likewise warned Prime Minister Mark Carney that they are “done accepting apologies,” while Sen. Bernie Moreno of Ohio has raised the prospect of sanctions.
Their frustration is understandable. For years, Americans have watched Canadian wildfire smoke trigger air-quality alerts and place people with respiratory conditions at greater risk. The immediate debate may center on forest management, fire prevention, and Canada’s responsibility to limit cross-border harm. But the episode raises a larger question with implications well beyond wildfires: Why should people bear the costs of pollution produced outside our borders?
Recommended Stories
That question reflects an important evolution in “America First” policy. Republicans are increasingly connecting trade and environmental performance — not because the party has adopted the regulatory agenda of the Left, but because environmental disparities can function as unfair economic subsidies. Countries that tolerate weak standards, poor enforcement, and high-emitting production give their industries an artificial cost advantage over U.S. companies that comply with some of the world’s most demanding rules.
Wildfire smoke makes the problem visible, but overseas industrial pollution imposes similar costs daily. Particulate matter, ozone, and ozone-forming emissions travel thousands of miles, adding to pollution levels in the United States even when domestic sources are tightly controlled. As the economies of China and South Asia have expanded, the volume of emissions transported across the Pacific has become a more significant challenge.
The consequences are not abstract. Overseas industrial pollution has been linked to more than 8,000 premature deaths and over $60 billion in annual U.S. health costs, including medical treatment, prescriptions, lost wages, and reduced productivity. It can also contribute to pollution levels in communities already struggling to meet federal air standards. When that happens, American businesses may face stricter permitting requirements, longer project delays, and limits on expansion — even though a meaningful share of the pollution was generated abroad.
The Trump administration has already embraced the principle that Americans should not be punished for pollution beyond their control. Last year, the Environmental Protection Agency rescinded guidance under the Clean Air Act that made it unnecessarily difficult for states to prove that international pollution was pushing counties into a more severe nonattainment category. This action matters because nonattainment is not merely a label. A more severe classification can trigger tighter permitting thresholds, higher emissions-offset requirements, and greater uncertainty for new industrial investment. And the economic harms are substantial — overseas pollution has contributed to air-quality challenges in more than 85 U.S. counties, particularly in the west.
EPA’s regulatory relief, while welcomed, addresses only one side of the problem. It protects U.S. communities from some domestic penalties; it does not eliminate the risks to public health or the competitive advantage enjoyed by foreign producers operating under weaker environmental regimes.
That is why trade policy must become part of the solution. The U.S.’s superior environmental performance should be rewarded, not penalized. Properly designed data-driven pollution fees would level the playing field for U.S. workers, strengthen domestic supply chains, and encourage foreign competitors to reduce the emissions associated with the goods they sell in our market.
CANADIANS SHOULD KISS TRUMP’S RING. HE JUST SHOCKED THEIR ECONOMY BACK TO LIFE
The Canadian wildfires bring this principle home — literally. Trump and other elected officials are right to insist that foreign governments take responsibility when their pollution imposes costs on Americans. But that principle should not end when the smoke clears. Whether pollution crosses the border in a visible cloud or slowly crosses the Pacific, the negative economic impacts are real.
Pollution does not respect borders, and neither should accountability. By improving the data used to measure foreign pollution and its impact on Americans and then applying an effective fee on dirty imports, America can safeguard public health, improve our domestic investment climate, and strengthen its industrial base. That is not environmentalism for its own sake. It is a pragmatic “America First” policy that defends American workers and protects their health.
George David Banks is president & CEO of the American Council for Capital Formation. He served as President Donald Trump’s international energy adviser in his first term.
