US raises pressure on EU to 'deliver' on non-tariff trade commitments

US 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 US 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 US that will suffer."

The EU laws cited by Puzder require large companies operating in the EU, including US firms, to disclose their environmental and social impacts, including working conditions across their supply chains.

A European Commission spokesperson did not immediately respond to a request for comment.

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 US 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.

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

The EU also scaled back its corporate sustainability rules, known as CSRD and CSDDD, last year after pushback from businesses and governments including the US 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.

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.

US companies including ExxonMobil had sought broader changes, including an exemption for foreign firms entirely.

"While the United States acknowledges some positive reforms in the December 2025 Sustainability Omnibus, those reforms failed to fully address US concerns regarding these directives," a statement accompanying Puzder's post said.