The European Union's Carbon Border Adjustment Mechanism introduces substantial carbon costs for steel imports while creating administrative complexity & price uncertainties. Louis Redshaw of Redshaw Advisors notes that delayed CBAM benchmark publications prevent importers from calculating liabilities, forcing companies to stockpile goods or defer transactions. CBAM certificates for 2026 imports won't be available until February 2027, creating risk management challenges. The mechanism will redirect carbon-intensive products to countries without carbon tariffs while cleaner products flow to Europe. Interestingly, CBAM is pushing major exporting nations to implement their own carbon pricing mechanisms to maintain European market access.