US threatens EU over its green reporting rules
Washington says Brussels still hasn’t delivered on its commitments from last year’s transatlantic trade deal.
The United States has threatened to take action against the European Union unless Brussels modifies its environmental and human rights regulations, which the U.S. claims place undue burdens on American companies. While acknowledging the EU has made "some positive reforms," Washington stated the bloc has "failed to fully address U.S. concerns" and asserted it "will take any actions necessary to address unreasonable burdens on U.S. commerce."
U.S. Ambassador to the EU Andrew Puzder escalated the pressure on Friday, posting on X that "now it's time for the EU to deliver." He referenced commitments under last year's Turnberry trade deal to prevent "undue restrictions" on U.S. businesses facing transatlantic trade due to Brussels' green regulations. At the heart of the dispute are two pillars of the EU's corporate sustainability rulebook: the Corporate Sustainability Due Diligence Directive, which obligates large companies to tackle human rights and environmental issues in their operations and supply chains, and the Corporate Sustainability Reporting Directive, requiring companies to disclose sustainability-related data.
Although Brussels has scaled back both laws as part of its effort to reduce bureaucracy, it has not gone far enough to shield U.S. companies from their impact. Last week, Puzder criticized the EU's Carbon Border Adjustment Mechanism as a tariff on U.S. exporters. On Thursday, the White House accused the EU and more than 40 countries of allowing Chinese goods to bypass U.S. tariffs by being rerouted through their markets.
A European Commission spokesperson told POLITICO that while Brussels has made "considerable efforts" to explain its rules and express its willingness to cooperate with the U.S. to boost trade where possible, it drew the line at changing its regulatory framework in response to U.S. pressure. "We have been very clear and consistent on the fact that neither our rules framework nor our regulatory autonomy are up for negotiation," the spokesperson emphasized.
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