U.S. presses EU to ease trade rules on sustainability laws

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US pressing EU on trade rules

Highlights

U.S. Ambassador Andrew Puzder urges the EU to soften supply-chain sustainability laws and amend the Carbon Border Adjustment Mechanism, citing harm to American businesses.
Brussels has already relaxed anti-deforestation, methane, and corporate sustainability rules, but sources say no further concessions are planned despite ongoing U.S. pressure.
December 2025 reforms delayed Corporate Sustainability Due Diligence Directive compliance to mid-2029 and narrowed reporting rules to firms with over 1,000 employees, drawing mixed U.S. responses.

Turnberry commitments come under renewed scrutiny

As reported by Reuters, the United States is urging the European Union to soften laws that make large companies responsible for the environmental and social impact of their global supply chains. U.S. Ambassador to the EU Andrew Puzder says the bloc should honor commitments made during trade talks with President Donald Trump in Turnberry, Scotland, in July 2025 on so-called non-tariff barriers.

Puzder says the EU committed under the Framework Agreement to ensure that its Corporate Sustainability Due Diligence Directive and Corporate Sustainability Reporting Directive do not pose undue restrictions on transatlantic trade. He argues that extraterritorial provisions harm American businesses and workers.

The EU measures cited by Washington require large companies operating in the bloc, including U.S. firms, to disclose environmental and social impacts, including working conditions across supply chains. Washington is also pressing the EU to amend its Carbon Border Adjustment Mechanism, which imposes charges on imports of goods produced without meeting the bloc's carbon emissions standards.

Brussels resists broader concessions on contested rules

The pressure is intensifying as U.S. and EU officials turn their attention to non-tariff barriers after tariff commitments agreed in July 2025 take effect. Three sources familiar with the discussions say they expect joint statements in the autumn covering the non-tariff parts of the Turnberry agreement.

Brussels has already softened some measures criticized by Washington over the past year, including its anti-deforestation law and methane emissions rules. Several sources familiar with the EU position say the bloc is not planning further concessions on those measures.

The EU also scaled back its corporate sustainability rules last year after resistance from businesses and governments including the U.S. and Qatar. Changes agreed in December limit the scope of the Corporate Sustainability Due Diligence Directive to the largest companies and delay the compliance deadline by two years to mid-2029, while the reporting directive now applies only to companies with more than 1,000 employees instead of more than 250.

U.S. companies including ExxonMobil have sought broader changes, including a full exemption for foreign firms. A statement accompanying Puzder's post says Washington acknowledges some positive reforms in the December 2025 Sustainability Omnibus, but does not believe those changes fully address U.S. concerns.

In our earlier article on the widening premium between U.S. COMEX copper futures and London Metal Exchange prices, we explained how the spread has become a real-time gauge of market expectations for possible U.S. Section 232 tariffs on refined copper. We also noted that the tariff premium has helped pull more metal into the U.S., while tight supply and uncertainty over the White House decision have supported prices and kept volatility elevated.

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