United States Urges EU to Ease Supply Chain Laws

The Government of the United States urged the European Union on August 14 to ease laws that hold large firms responsible for the environmental and social impacts of their global supply chains. US Ambassador to the EU Andrew Puzder stated that the EU must honor commitments made during July 2025 trade talks between the EU and President Donald Trump in Turnberry, Scotland.

Washington is specifically seeking to ensure that the Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive (CSRD) do not pose undue restrictions on trade. Additionally, the US is seeking amendments to the Carbon Border Adjustment Mechanism (CBAM), which imposes charges on imports that fail to meet EU carbon emissions standards.

Although the EU scaled back some sustainability rules in December 2025 by limiting the CSDDD to the largest companies and raising the CSRD employee threshold to 1,000, the US maintains these reforms failed to fully address its concerns. Sources indicate the EU is not planning further concessions on these measures.