More Cap-and-Trade War

Ten Senators insist on a carbon tariff to avoid job losses.
President Obama says his cap-and-trade energy tax won't hurt the economy, but at least 10 Senate Democrats disagree. Last week they sent Mr. Obama a letter demanding that any bill taxing U.S. CO2 emissions must include a carbon tariff "to ensure that manufacturers do not bear the brunt of our climate change policy."
Hmmm. This sure sounds like an explicit admission that cap and tax would add so much to the cost of doing business in the U.S. that it would drive factories and jobs overseas. The 10 mostly liberal Senators come from states like Ohio, Michigan and West Virginia whose economies rely heavily on manufacturing and coal. "We must not engage in a self-defeating effort that displaces greenhouse gas emissions rather than reducing them and displaces U.S. jobs rather than bolstering them," wrote the Senators.
Thus their demand that "a longer-term border adjustment mechanism"—a euphemism for tariffs—"is a vital part of this package to prevent the relocation of carbon emissions and industries" to countries that aren't as foolish as to impose a similar tax. Those countries include China and India, which have told Obama officials that they have no intention of signing on to the rich world's growth-killing obsessions.
All of which puts the President in an economic policy bind. When the House passed its cap-and-tax bill in June, he warned against a carbon tariff by saying "I think we need to be very careful about sending any protectionist signals." But these 10 Senate Democrats are saying explicitly that protectionism is the price of their support. So Mr. Obama can opt to impose a huge carbon tax and drive jobs overseas, or he can impose the tax along with a tariff, and kick off a trade war. Better to call the whole thing off.