Washington presses Europe over sustainability rules and carbon border mechanism

Washington called on the European Union to implement its trade commitments reached in July 2025, ease corporate sustainability rules and amend its Carbon Border Adjustment Mechanism, while sources said the bloc does not intend to offer further concessions.

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Washington presses Europe over sustainability rules and carbon border mechanism

The United States on Friday called on the European Union to ease rules that hold major companies responsible for the environmental and social impacts of global supply chains, urging the bloc to honor its commitments not to impede transatlantic trade.

  • The European Union comprises 27 countries

  • Trade talks were held in July 2025

  • Three sources expected joint statements in the autumn

Calls to implement the Turnberry agreement

Andrew Puzder, the U.S. ambassador to the European Union, said in a post on the X platform that the 27-country bloc must fulfill the commitments it made during trade talks with U.S. President Donald Trump in Turnberry, Scotland, in July 2025, to address what are known as non-tariff barriers.

The time has come for the EU to fulfill its promises. Under the framework agreement, the bloc committed to ensuring that its corporate sustainability due diligence directives ... do not constitute unjustified restrictions on transatlantic trade.

Puzder added that the extraterritorial provisions cast a shadow over U.S. companies and workers, and that the damage would not be limited to the United States.

Sustainability rules cover U.S. companies

The EU laws cited by Puzder require major companies operating in the bloc, including U.S. companies, to disclose their impacts on the environment and society, including working conditions throughout their supply chains.

A European Commission spokesperson has not yet responded to a request for comment.

Pressure to amend the carbon border mechanism

Washington is also pressing the European Union to amend the mechanism known as the 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 after U.S. and EU officials shifted their focus to non-tariff barriers following the entry into force of the tariff commitments agreed in July 2025.

Joint statements expected in the autumn

Three sources familiar with the matter expected joint statements in the autumn covering the non-tariff elements of the Turnberry agreement.

The European Union has already eased a number of policies criticized by Washington over the past year, including its anti-deforestation law and methane-emissions rules, but several sources familiar with the matter said the bloc does not intend to make further concessions on those measures.

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