US urges EU to ease supply chain laws, citing trade commitments

The United States has intensified its pressure on the European Union to revise its environmental and social supply chain regulations, asserting that these laws impede transatlantic trade. U.S. Ambassador to the EU Andrew Puzder stated on X that the bloc must honor commitments made during trade discussions with President Donald Trump in July 2025 to address non-tariff barriers.

Puzder specifically cited the EU's Corporate Sustainability Due Diligence Directive (CSDDD) and Corporate Sustainability Reporting Directive (CSRD), arguing that their extraterritorial provisions negatively impact American businesses and workers. These directives require large companies operating within the EU, including U.S. firms, to report on their environmental and social impacts throughout their supply chains.

Washington is also advocating for changes to the EU's Carbon Border Adjustment Mechanism (CBAM), which levies charges on imports based on their carbon emissions. This renewed push comes as U.S. and EU officials focus on non-tariff barriers following the implementation of tariff agreements in July 2025.

Sources familiar with the discussions indicated that joint statements on the non-tariff aspects of the Turnberry agreement are anticipated in the autumn. The EU has previously made concessions on certain policies criticized by the U.S., such as its anti-deforestation law and methane emissions rules. However, sources close to the EU position suggest further concessions on these specific measures are not planned.

Last year, the EU scaled back its corporate sustainability rules following pushback from businesses and governments, including the U.S. and Qatar. The CSDDD's scope was limited to the largest companies, with its compliance deadline postponed by two years to mid-2029. Similarly, the CSRD, which mandates reporting on environmental and social impacts, now applies only to companies with over 1,000 employees, a reduction from the initial threshold of 250.