US Urges EU to Honor Non-Tariff Trade Commitments Amid Regulatory Disputes
US-EU Tensions Over Non-Tariff Barriers and Regulatory Policies
By Julia Payne and Kate Abnett
US Concerns Over EU Supply Chain Regulations
BRUSSELS, Aug 14 (Reuters) - The United States urged the European Union on Friday to ease its laws putting responsibility on large firms for the environmental and social impact of their global supply chains, arguing the bloc had pledged such measures would not hamper EU-U.S. trade.
U.S. Ambassador to the EU Andrew Puzder said in a post on X that the 27-nation bloc should honour commitments made during trade talks with President Donald Trump in Turnberry, Scotland, in July 2025 to address so-called non-tariff barriers.
"Now it's time for the EU to deliver. Under the Framework Agreement, the EU committed 'to ensure' that its Corporate Sustainability Due Diligence Directive and Corporate Sustainability Reporting Directive 'do not pose undue restrictions on transatlantic trade'," Puzder wrote.
"Extraterritorial provisions harm American businesses and workers, but it is not just the U.S. that will suffer."
EU Laws Impacting US Firms
The EU laws cited by Puzder require large companies operating in the EU, including U.S. firms, to disclose their environmental and social impacts, including working conditions across their supply chains.
EU Response and Ongoing Negotiations
A European Commission spokesperson said the EU and U.S. were continuing to work on tariff and non-tariff issues. The EU has explained its rules related to non-tariff issues, and emphasised its willingness to cooperate with the U.S. to increase trade where possible, the spokesperson said.
"We have been very clear and consistent on the fact that neither our rules framework nor our regulatory autonomy are up for negotiation," they added.
Carbon Border Adjustment Mechanism (CBAM) and Further US Pressure
Washington is also pushing the EU to amend its Carbon Border Adjustment Mechanism (CBAM), which imposes charges on imports of goods produced without meeting the bloc's carbon emissions standards.
The renewed pressure comes as U.S. and EU officials turn their attention to non-tariff barriers after tariff commitments agreed in July 2025 took effect.
Three sources familiar with the discussions said they expected joint statements in the autumn covering the non-tariff elements of the Turnberry agreement.
Recent EU Concessions and Remaining Disputes
Brussels has already softened some of the policies criticised by Washington over the past year, including its anti-deforestation law and methane emissions rules. Several sources familiar with the EU position said the bloc was not planning further concessions on those measures.
Sustainability Rules and Corporate Directives
Scaling Back of Corporate Sustainability Rules
SUSTAINABILITY RULES
The EU also scaled back its corporate sustainability rules, known as CSRD and CSDDD, last year after pushback from businesses and governments including the U.S. and Qatar.
Changes agreed in December limited the scope of the Corporate Sustainability Due Diligence Directive (CSDDD) to the largest companies and delayed the compliance deadline by two years to mid-2029.
Corporate Sustainability Reporting Directive (CSRD) Changes
The Corporate Sustainability Reporting Directive (CSRD), which requires companies to report environmental and social impacts, will now apply only to firms with more than 1,000 employees, compared with the original threshold of more than 250 employees.
U.S. companies including ExxonMobil had sought broader changes, including an exemption for foreign firms entirely.
US Reaction to EU Reforms
"While the United States acknowledges some positive reforms in the December 2025 Sustainability Omnibus, those reforms failed to fully address U.S. concerns regarding these directives," a statement accompanying Puzder's post said.
Additional Information
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(Reporting by Julia Payne and Kate Abnett. Editing by Mark Potter and Toby Chopra)