Twenty-six financial officials from 21 states have written to President Donald Trump, urging his administration to review European Union (EU) climate regulations that impact U.S. companies operating in Europe. They are calling for a U.S. Trade Representative (USTR) investigation into these EU rules, arguing that they grant European regulators excessive control over American businesses.
In their letter, the officials contend that these climate mandates undermine their ability to protect state finances and investments. They urge Trump to consider reviewing the regulations as part of his broader effort to reassess international environmental agreements that, in his view, “unduly or unfairly burden the United States.”
“While EU member states are key American trading partners and geopolitical allies, this partnership cannot come at the cost of subjecting American companies to unbounded regulatory requirements that will only weaken the economies of both Europe and the United States,” the letter states. “By reaching into domestic business operations, the directives serve as a direct assault on American sovereignty.”
The letter highlights concerns about EU rules mandating extensive environmental, social, and corporate governance (ESG) disclosures and broad interpretations of “materiality,” which could lead to politicized enforcement or legal action in the U.S. Officials also cite EU requirements for corporate green transition plans and supply chain ESG disclosures, arguing that these measures affect U.S. companies’ domestic operations. They are calling for a USTR investigation into “the overall European ‘Green Deal’ and related taxes, subsidies, and directives.”
“The EU directives, built on unscientific assumptions about the nature of climate change impacts and ignoring the reality that the world’s economy remains reliant on fossil fuels for the foreseeable future, will force companies to incriminate themselves,” the letter asserts.
“Our aim is to enhance trade relations with the EU’s member states—some of our country’s strongest allies and best trading partners. The EU’s aggressive ESG agenda has crippled European economic growth and threatens to undermine that of the United States,” it continues. “This is intolerable. We hope that strong action, including a Section 301 investigation, motivates the EU to reconsider its sustainability directives.”
A Section 301 investigation, under the Trade Act of 1974, allows the USTR to address foreign policies that violate trade agreements or unfairly harm U.S. commerce, according to the Congressional Research Service.
Will Hild, executive director of Consumers’ Research, supports the officials’ call for an investigation, stating, “In his first month in office, President Trump has kept his promises to the American people and is eliminating the rot that is ESG and woke capitalism from our institutions. But there is more to be done. These ESG-obsessed climate cartels will not stop pushing an activist agenda on Americans until President Trump’s policies are adopted by institutions.”
“Thank you to the state financial officers who are continuing to put pressure on these EU groups who are more obsessed with climate activism than good business practices,” Hild added. “The Trump administration should investigate and challenge all European programs that subject American companies to radical climate goals.”
