US urges EU to relax corporate sustainability regulations

On August 15, 2026, the United States officially requested that the European Union relax regulations holding major corporations accountable for the environmental and social impacts of their global supply chains. Andrew Pazder, the U.S. Ambassador to the EU, stated via social media that these measures violate previous commitments made during trade negotiations between President Donald Trump and European officials in Turnberry, Scotland, in July 2025.

Ambassador Pazder specifically identified the Corporate Sustainability Due Diligence Directive and the Corporate Sustainability Reporting Directive as problematic, labeling them as non-tariff trade barriers. He argued that these extraterritorial provisions unfairly harm American businesses and workers. According to the U.S. position, the EU had previously committed under a Framework Agreement to ensure that such sustainability policies would not impose unreasonable restrictions on transatlantic commerce.

These directives require large companies operating within the EU to manage risks and report on their social and environmental footprint throughout their global operations. The U.S. government is now pressuring the bloc to honor its prior pledges, asserting that the current legal framework hinders trade and imposes undue burdens on firms. The situation remains a point of contention in EU-U.S. trade relations, with the U.S. calling for immediate policy adjustments.