US businesses are voicing growing concerns over the European Union’s ESG regulations, arguing that stringent rules are becoming a major barrier to trade. The American Chamber of Commerce to the European Union (AmCham EU), which represents major corporations like Ford, Exxon Mobil, and Amazon, has urged the EU to delay or halt key environmental, social, and governance (ESG) policies. 

The Chamber contends that businesses should not be forced to comply with ESG mandates while legislative reviews are still in progress. The pushback adds to mounting pressure from Germany and France, which have also called for a simplification of ESG rules amid economic slowdown concerns. 

Key regulations under scrutiny include the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), and the EU Taxonomy Regulation. The CSRD requires companies to disclose extensive ESG data, while the CSDDD holds firms legally accountable for ESG violations in their supply chains. According to AmCham, these regulations are now a “top concern” for transatlantic businesses, with 84% of US companies operating in the EU citing ESG compliance as a primary trade barrier. 

AmCham has called for an immediate halt to the implementation of the CSDDD and a delay in the CSRD rollout. The group argues that businesses have already made substantial investments in compliance and need regulatory certainty to align with the EU’s carbon neutral strategy. 

EU policymakers acknowledge the criticism but remain committed to ESG goals. EU Financial Services Commissioner Maria Luis Albuquerque has hinted at potential adjustments but emphasized that deregulation is not on the table. Instead, the EU aims to refine the regulatory framework to balance sustainability ambitions with economic competitiveness. 

This debate underscores the challenges of aligning ESG policies with global trade and investment priorities. 

Sources: 

https://www.businesstimes.com.sg/international/us-businesses-say-esg-rules-growing-barrier-eu-trade 

https://www.bloomberg.com/news/articles/2025-02-10/us-businesses-say-esg-rules-are-a-growing-barrier-to-eu-trade 

https://www.insurancejournal.com/news/national/2025/02/10/811348.htm 

https://www.forbes.com/sites/davidblackmon/2025/02/09/lutnick-says-eu-esg-regulations-will-harm-us-energy-producers/