US threatens action against EU over green reporting and human rights rules

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The U.S. on Friday threatened action against the EU unless Brussels reins in its environmental and human rights rules, which Washington says unfairly burden American companies.

Acknowledging Brussels had made “some positive reforms,” Washington said the EU had “failed to fully address U.S. concerns,” and that it “will take any actions necessary to address unreasonable burdens on U.S. commerce.”

U.S. Ambassador to the EU Andrew Puzder piled on the pressure Friday, writing on X that “now it’s time for the EU to deliver.” He pointed to commitments made under last year’s Turnberry trade deal to ensure U.S. businesses do not face “undue restrictions” on transatlantic trade due to Brussels’ green regulations.

The dispute centers on two pillars of the EU’s corporate sustainability rulebook: the Corporate Sustainability Due Diligence Directive , which requires large companies to address human rights and environmental harms linked to their operations and supply chains, and the Corporate Sustainability Reporting Directive , which requires companies to disclose sustainability-related information.

Brussels has scaled back both laws in its drive to cut red tape, but has stopped short of Washington’s demand to shield U.S. companies from their reach.

Last week, Puzder similarly attacked the EU’s Carbon Border Adjustment Mechanism as a tariff on U.S. exporters. On Thursday, the White House also accused the EU and more than 40 countries of enabling Chinese goods to skirt U.S. tariffs by rerouting them through their markets.

The European Commission did not immediately respond to POLITICO’s request for comment.

Koen Verhelst contributed reporting.