US calls on EU to relax corporate sustainability laws

The United States has urged the European Union to relax its corporate sustainability regulations, citing commitments made during earlier trade negotiations. U.S. Ambassador to the EU Andrew Puzder mentioned that the EU should honor promises made in trade talks with President Donald Trump in Turnberry, Scotland, in July 2025. These regulations, including the Corporate Sustainability Due Diligence Directive and Corporate Sustainability Reporting Directive, are seen as imposing undue restrictions on transatlantic trade.

Puzder argued that extraterritorial provisions adversely affect American businesses and workers, but the impact extends beyond the U.S. The EU's regulations require large companies operating within the EU, including American firms, to report their environmental and social impacts, including labor conditions in their supply chains.

A European Commission spokesperson reiterated that both the EU and U.S. are continuing negotiations on tariff and non-tariff matters, with the EU clarifying its rules on non-tariff issues and expressing willingness to cooperate with the U.S. to boost trade where possible. However, the EU has stated that its regulatory framework and autonomy are non-negotiable.

Washington is also pushing for changes to the EU's Carbon Border Adjustment Mechanism, which imposes fees on imports of products that do not meet the bloc's carbon emissions standards. This push for change follows the implementation of tariff agreements in July 2025, as U.S. and EU officials redirect their attention to non-tariff barriers.