In using the removal of Section 232 ‘national security’ tariffs on steel and aluminiumimports as a bargaining chip, the United States demands that the European Unionengage in negotiations on “global steel and aluminium arrangements to restoremarket-oriented conditions and address carbon intensity”. The US demand hasreportedly been inspired by a blueprint that would establish an internationalinstitutional arrangement – labelled a ‘climate club’ – which would externalisemarket-access restrictions afforded by US Section 232 tariffs to the customs borders ofclub members. While the declared objective is to incentivise non-members to adoptlow-carbon steel (and aluminium) production methods the US blueprint suffersfrom various design flaws including inefficient incentives, WTO inconsistency and incompatibility with the EU Carbon Border Adjustment Mechanism.