29 August 2025
Former President Donald Trump is pressing the European Union to ease sustainability due diligence rules for American companies, making it a central issue in ongoing transatlantic trade negotiations. The move reflects mounting U.S. business concerns that the EU’s new Corporate Sustainability Due Diligence Directive (CSDDD) and Corporate Sustainability Reporting Directive (CSRD) could impose costly compliance burdens and legal risks.
Passed in 2024 as part of the EU Green Deal, the CSDDD requires companies to monitor and enforce environmental and human rights standards across their global supply chains. It also opens the door to civil liability for climate-related damages and other violations.
The CSRD, meanwhile, expands reporting obligations on greenhouse gas emissions and other ESG factors. Together, the measures are among the EU’s most ambitious attempts to hold corporations accountable for sustainability impacts, but they have sparked backlash from U.S. businesses worried about high costs and exposure to lawsuits.
Trump seized on the issue during renewed trade talks with Brussels this summer. After threatening a 30% tariff on EU imports, he used negotiations as leverage to demand changes, raising the CSDDD directly with European Commission President Ursula von der Leyen during a July meeting in Scotland. A month later, both sides announced a preliminary trade framework, pledging to work toward “reciprocal, fair, and balanced trade.”
The joint statement, released on August 21, included a significant passage: the EU committed to “reduce the administrative burden on businesses” and review liability and climate-transition obligations tied to the CSDDD. It also promised to address U.S. concerns about applying the directive to non-EU firms with strong domestic regulations.
Von der Leyen’s emphasis on cutting red tape has been a hallmark of her second term, especially after rightward shifts in the European Parliament amplified opposition to Green Deal measures. In February, the Commission adopted an “Omnibus Simplification Package” to ease compliance rules, while Parliament continues to debate changes to reporting thresholds and obligations for foreign companies.
Still, the Commission quickly walked back parts of the August deal. A little-noticed Q&A posted on its website the same day clarified that no special exemptions for U.S. firms were planned. Instead, it said the EU had only “agreed to exchange views” with Washington and reaffirmed that “this cooperation does not lead to any changes to EU domestic rules nor will we grant U.S. companies more favourable treatment.”
Sustainability advocates welcomed the clarification, warning that weakening the CSDDD would undermine its core purpose. But the ambiguity leaves room for interpretation. Analysts note that if U.S. companies ultimately win relief, it could extend to other foreign businesses as well.
The CSRD, which similarly applies to many non-EU firms, was notably absent from the joint statement. Yet it too is under revision, with proposals already on the table to scale back requirements for international companies, changes that could align with Trump’s goals.
For now, the EU Parliament is expected to focus primarily on easing burdens for European businesses when it finalizes its CSDDD position in October. U.S. concerns are more likely to surface behind closed doors during trilogue negotiations later this year. Any concessions to Trump, observers say, may not be visible until the final legislation is adopted in December.
Trade-talk pressure on CSRD and CSDDD scope shapes how much extraterritorial reach ultimately survives, and it directly affects what non-EU multinationals should plan for on reporting infrastructure. Our ESG-strategy and sustainability-due-diligence teams help clients build reporting infrastructure robust across whatever the final scope looks like.
• 𝘋𝘶𝘣𝘢𝘪 𝘗𝘰𝘭𝘪𝘤𝘦 𝘩𝘢𝘴 𝘤𝘰𝘮𝘱𝘭𝘦𝘵𝘦𝘥 𝘵𝘩𝘦 𝘧𝘪𝘳𝘴𝘵 𝘱𝘩𝘢𝘴𝘦 𝘰𝘧 𝘢 𝘴𝘰𝘭𝘢𝘳 𝘦𝘯𝘦𝘳𝘨𝘺 𝘱𝘳𝘰𝘫𝘦𝘤𝘵 𝘢𝘤𝘳𝘰𝘴𝘴 28 𝘱𝘰𝘭𝘪𝘤𝘦 𝘴𝘪𝘵𝘦𝘴. • 𝘛𝘩𝘦 𝘱𝘳𝘰𝘫𝘦𝘤𝘵 𝘪𝘴 𝘦𝘴𝘵𝘪𝘮𝘢𝘵𝘦𝘥 𝘵𝘰 𝘳𝘦𝘥𝘶𝘤𝘦 𝘢𝘯𝘯𝘶𝘢𝘭 𝘤𝘢𝘳𝘣𝘰𝘯 𝘦𝘮𝘪𝘴𝘴𝘪𝘰𝘯𝘴 𝘣𝘺 26,000 𝘵𝘰𝘯𝘯𝘦𝘴. • 𝘛𝘩𝘦 𝘳𝘦𝘥𝘶𝘤𝘵𝘪𝘰𝘯 𝘦𝘲𝘶𝘢𝘵𝘦𝘴 𝘵𝘰…
• 𝘚𝘪𝘯𝘨𝘢𝘱𝘰𝘳𝘦 𝘩𝘢𝘴 𝘪𝘯𝘵𝘳𝘰𝘥𝘶𝘤𝘦𝘥 𝘢 𝘱𝘳𝘰𝘱𝘰𝘴𝘦𝘥 𝘋𝘪𝘨𝘪𝘵𝘢𝘭 𝘐𝘯𝘧𝘳𝘢𝘴𝘵𝘳𝘶𝘤𝘵𝘶𝘳𝘦 𝘉𝘪𝘭𝘭 𝘢𝘪𝘮𝘦𝘥 𝘢𝘵 𝘴𝘵𝘳𝘦𝘯𝘨𝘵𝘩𝘦𝘯𝘪𝘯𝘨 𝘵𝘩𝘦 𝘴𝘦𝘤𝘶𝘳𝘪𝘵𝘺, 𝘳𝘦𝘴𝘪𝘭𝘪𝘦𝘯𝘤𝘦 𝘢𝘯𝘥 𝘦𝘯𝘷𝘪𝘳𝘰𝘯𝘮𝘦𝘯𝘵𝘢𝘭 𝘴𝘶𝘴𝘵𝘢𝘪𝘯𝘢𝘣𝘪𝘭𝘪𝘵𝘺 𝘰𝘧 𝘥𝘢𝘵𝘢 𝘤𝘦𝘯𝘵𝘳𝘦𝘴 𝘢𝘯𝘥 𝘤𝘭𝘰𝘶𝘥 𝘴𝘦𝘳𝘷𝘪𝘤𝘦𝘴. • 𝘛𝘩𝘦 𝘉𝘪𝘭𝘭 𝘸𝘰𝘶𝘭𝘥…
• 𝘌𝘶𝘳𝘰𝘱𝘦’𝘴 𝘭𝘢𝘳𝘨𝘦𝘴𝘵 𝘪𝘯𝘥𝘶𝘴𝘵𝘳𝘪𝘢𝘭 𝘤𝘢𝘳𝘣𝘰𝘯 𝘤𝘢𝘱𝘵𝘶𝘳𝘦 𝘧𝘢𝘤𝘪𝘭𝘪𝘵𝘺 𝘩𝘢𝘴 𝘣𝘦𝘦𝘯 𝘪𝘯𝘢𝘶𝘨𝘶𝘳𝘢𝘵𝘦𝘥 𝘢𝘵 𝘠𝘢𝘳𝘢’𝘴 𝘢𝘮𝘮𝘰𝘯𝘪𝘢 𝘢𝘯𝘥 𝘧𝘦𝘳𝘵𝘪𝘭𝘪𝘴𝘦𝘳 𝘱𝘭𝘢𝘯𝘵 𝘪𝘯 𝘚𝘭𝘶𝘪𝘴𝘬𝘪𝘭, 𝘵𝘩𝘦 𝘕𝘦𝘵𝘩𝘦𝘳𝘭𝘢𝘯𝘥𝘴. • 𝘛𝘩𝘦 𝘧𝘢𝘤𝘪𝘭𝘪𝘵𝘺 𝘤𝘢𝘯 𝘤𝘢𝘱𝘵𝘶𝘳𝘦 𝘢𝘯𝘥 𝘭𝘪𝘲𝘶𝘦𝘧𝘺 𝘶𝘱 𝘵𝘰 800,000 𝘵𝘰𝘯…