Imports of steel and cement from countries such as China, India and Vietnam could face a “green tariff” aimed at levelling the playing field for Australian producers that are being forced to slash carbon emissions under rules that took effect last month.

Climate Change Minister Chris Bowen will announce on Tuesday that Australia could impose a so-called carbon border adjustment mechanism to shield domestic manufacturers subject to the new safeguard mechanism from offshore rivals in countries that have weaker or non-existent decarbonisation policies.