US presses EU on sustainability rules

On August 14, 2026, the United States, through its Ambassador to the EU Andrew Puzder, urged the European Union to ease its corporate sustainability laws, specifically the Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive (CSRD), arguing that these extraterritorial provisions harm American businesses and workers and violate commitments made under the Framework Agreement during trade talks with President Donald Trump in Turnberry, Scotland, in July 2025. Washington also pushed for amendments to the EU's Carbon Border Adjustment Mechanism (CBAM). The EU had already scaled back these rules in December 2025, limiting CSDDD to the largest companies and delaying compliance to mid-2029, and raising the CSRD employee threshold to 1,000. U.S. companies, including ExxonMobil, had sought broader changes, including a full exemption for foreign firms. The EU has softened other policies criticized by Washington, such as anti-deforestation and methane rules, but sources indicate no further concessions are planned. Joint statements on non-tariff elements are expected in the autumn.