The United States has urged the European Union to honor its trade commitments by revising corporate sustainability rules that could hinder American businesses operating within the bloc.
In a move targeting non-tariff barriers, U.S. Ambassador Andrew Puzder called on Brussels to revise regulations that impose significant burdens on American companies. Speaking Friday, Puzder emphasized that the EU must honor commitments made during previous trade talks with President Donald J. Trump to address these issues.
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 environmental and social impacts across global supply chains. He also pressed the EU to amend its Carbon Border Adjustment Mechanism, a policy that imposes charges on imports failing to meet EU carbon standards.
The renewed pressure follows preparations by U.S. and EU officials to tackle non-tariff barriers after implementing tariff commitments agreed in 2025. While the EU has narrowed sustainability requirements—limiting reporting directives to companies with over 1,000 employees and delaying due diligence compliance until mid-2029—the U.S. asserts these reforms do not fully address concerns or are applied unevenly. Several EU officials have indicated the bloc is unlikely to make further concessions on other disputed environmental measures.
Puzder stated: “Extraterritorial provisions harm American businesses and workers, but it is not just the U.S. that will suffer.”
The Trump administration argues EU regulations create non-tariff barriers that unfairly burden American companies, straining transatlantic trade relations. With the EU having made some concessions, failure to implement changes could escalate into a tariff war with the United States.
