Overview
- U.S. Ambassador to the EU Andrew Puzder publicly urged the European Union to 'deliver' on trade commitments by reworking the Corporate Sustainability Due Diligence Directive and Corporate Sustainability Reporting Directive so they do not unduly restrict transatlantic trade.
- Washington also called for amendments to the Carbon Border Adjustment Mechanism, which charges imports based on their carbon intensity and is viewed by U.S. officials as a tariff-like burden on American exporters.
- Brussels has already narrowed several measures in response to international pushback, including limiting the CSDDD to the very largest firms, delaying CSDDD compliance to mid-2029, and raising the CSRD threshold to companies with more than 1,000 employees.
- U.S. officials said the December changes fell short of U.S. demands and warned they 'will take any actions necessary' to address what they call unreasonable burdens on U.S. commerce, making further negotiation or unilateral steps possible.
- The dispute sits inside a wider U.S.-EU effort to resolve non-tariff barriers after last year’s tariff deal, and its outcome could affect supply chains, export costs for U.S. manufacturers, and future cooperation on global trade and climate rules.