EU pushes back as US revives trade pressure on bloc

The European Union responded robustly to renewed trade pressure from the United States, maintaining that its regulations and regulatory autonomy were non-negotiable, according to a Reuters report. In a statement, the EU emphasized that its trade talks with the US remained constructive, while stressing that its environmental and human rights supply chain standards were not up for debate.

US Ambassador to the EU Andrew Puzder urged the bloc to align the provisions of two new landmark laws on environmental and human rights supply chain standards with the EU-US trade deal struck last year. He posted on X, "Now it's time for the EU to deliver," alongside a US government document detailing numerous concerns with the rules.

European Commission spokesperson Arianna Podesta responded to Puzder's message, saying the EU continued to exchange on both tariff and non-tariff issues, describing the process as "constructive." However, she reiterated that neither the EU's regulatory framework nor its regulatory autonomy was open to negotiation.

The Corporate Sustainability Due Diligence Directive (CSDDD) and Corporate Sustainability Reporting Directive (CSRD) were highlighted as key pieces of legislation. The US document claimed that the extraterritorial reach and stringent supply chain due diligence obligations imposed by these directives would disadvantage US businesses competing in the EU market. Despite EU efforts to dial back the scope of both laws under business pressure, the US document asserted that these measures were insufficient.

Puzder's comments followed his earlier criticism of the EU's carbon border tax, CBAM, which he labeled a "tariff in substance," despite its climate policy label. Meanwhile, the EU was among several trading partners identified in a White House report as potential risks for illegal transshipment from China. The report called for the use of artificial intelligence to detect such practices in the future.

The EU acknowledged the US objective of combating customs fraud and stated it was engaging with Washington to better understand the report's implications for the EU, while noting the document found the EU's transshipment risk to be embedded within broader legitimate trade flows.