US threatens EU over its green reporting rules

By Milena Wälde | 08/14/2026 12:55 PM EDT

Washington says Brussels still hasn’t delivered on its commitments from last year’s transatlantic trade deal.

United States Ambassador to the European Union Andrew Puzder speaks.

United States Ambassador to the European Union Andrew Puzder during an interview in Brussels. Nicolas Tucat/AFP via Getty Images

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.

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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.