This study examines the economic implications of the Carbon Border Adjustment Mechanism (CBAM). As an implicit carbon tax at EU borders, the CBAM could be a powerful tool for achieving carbon neutrality by complementing the European Union Emissions Trading System (EU ETS). However, this instrument may generate supply chain distortions with economic consequences diverging widely across countries and sectors in terms of carbon costs and inflationary pressures. If the policy is yet to be implemented, many uncertainties remain regarding the right CBAM design, notably concerning product coverage and carbon intensity estimations. This paper addresses these challenges by developing an import-based price model based on Leontief's input-output framework. Several scenarios are tested to account for different CBAM designs and are evaluated regarding economic, social and environmental impacts. The key contribution of the study lies in accurately defining sectoral cost pass-through rates, which capture supply chain transmission effects that other models often overlook.