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Sources: US warns countries that if they reject UN deal on ship fuel emissions, they will face tariffs

U.S. officials and European sources have confirmed that the United States has warned countries not to accept a United Nations deal on cutting marine fuel emissions or else face tariffs and visa restrictions.

The Trump administration wants to increase the economic power of the United States, which includes taking a larger role in global shipping. It has also used tariffs to force Washington's trading partners to offer better terms.

In April, the International Maritime Organization of the U.N. (IMO) reached a draft agreement that would impose a charge on ships that violate global standards for carbon emissions.

Washington withdrew from the April talks that led to the draft agreement, and announced in August that it would take retaliation against countries who supported the deal. The US has said that the measures will place an unnecessary burden on the shipping industry and won't help reduce emissions.

Four sources who declined to identify themselves due to the sensitive nature of the issue said that the U.S. State Department contacted other IMO members in recent days to warn them against adopting the "Net-Zero Framework".

A spokesperson for the State Department said that the U.S. "actively explored and prepared to act on remedies, including tariffs and visa restrictions and/or ports levies, should this effort be successful in the October IMO special session vote".

The spokesperson stated that the department would be engaging "our allies and partners" to suggest they take similar steps, but refused to comment on "private discussions with other countries".

A spokesperson for the Dutch Ministry of Infrastructure and Water Management said that the Dutch government was verbally warned by representatives of the U.S. Government, warning it of tariffs or retaliatory actions if they supported the adoption.

Washington did not specify which other IMO nations it had contacted.

The London-based IMO is responsible for regulating international shipping safety and security and preventing pollution.

The IMO agreement was intended to accelerate decarbonisation. Global shipping is responsible for almost 3% of CO2 emissions. Around 90% of world trade is carried out by sea and without a mechanism, emissions will soar.

An IMO spokesperson stated that the upcoming session of the (IMO) in October will provide the right platform for member states to voice their concerns before the adoption process.

The deal was approved by 63 countries, with 16 states voting against it and 24 abstentions. If it is put to a vote it will require a majority. Sources said that it was unclear whether it would pass if there were more abstentions. (Reporting and editing by Jan Harvey; Jonathan Saul, Kate Abnett Nerijus Adomiaitis Valerie Volcovici Enes Tunagur Bart Meijer)

(source: Reuters)