SUMMARYThis paper uses some partial equilibrium models to assess the possible theoretical effects of pollution abatement on the terms of trade and the trade balance of the United States. The results depend on the sectoral location of the pollution (export or import‐competing) and on the type of pollution (production or consumption). The U. S. will experience a deterioration in its trade balance in combatting production pollution and probably an increase in the abatement of consumption pollution. For import‐consumption pollution and export‐production pollution, abatement results in an increase in the U. S. terms of trade and welfare while the opposite occurs for import‐production and export‐consumption pollution. It is possible that the less developed countries have been bearing part of the burden for unabated pollution in the Unit