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The US is asking EU companies to comply with Trump’s anti-DEI order

The US is asking EU companies to comply with Trump’s anti-DEI order

CryptopolitanCryptopolitan2025/03/29 23:33
By:By Shummas Humayun

Share link:In this post: Trump administration pressures European firms to comply with US DEI ban. Legal experts are questioning the enforceability of DEI compliance demands outside the US. US-EU tensions are escalating further.

European companies are facing pressure from the Trump administration to follow a US executive order banning diversity, equity, and inclusion programs. 

A letter sent by the American embassy in Paris and other embassies around the European Union warns that Donald Trump’s order applies to firms outside the United States if they are suppliers or service providers to the federal government.

The embassies also included a questionnaire titled “Certification regarding compliance with applicable federal anti-discrimination law.” This questionnaire instructs recipients to confirm they do not operate any programs that promote DEI in ways that violate anti-discrimination statutes. 

The document states, “Department of State contractors must certify that they do not operate any programs promoting DEI that violate any applicable anti-discrimination laws and agree that such certification is material for purposes of the government’s payment decision and therefore subject to the False Claims Act.”

According to the same sources, the letter and questionnaire were dispatched by US diplomats in eastern EU states and Belgium. 

A senior banker in Paris expressed shock when he read the letter, saying, “It’s crazy . . . but everything is now possible. The rule of the strongest now prevails.”

Several companies contacted the French finance ministry about the demand, prompting concern within the government. 

A person close to France’s economy minister Eric Lombard said, “This practice reflects the values of the new US government. They are not the same as ours. The ministry will remind his counterparts in the US government of that.” Les Échos newspaper first reported the letter’s existence.

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Some executives will not respond to the request

Initial legal reviews suggest that the measure may not be legally enforceable outside the United States. Some executives and their legal teams have chosen not to answer the questionnaire for the time being. 

This strain has intensified as the United States shifts away from long-standing alliances, particularly over Russia’s full-scale invasion of Ukraine.

Earlier this week, Trump imposed a 25 percent tariff on auto imports into the United States. He also raised tariffs on European steel and aluminum, prompting the EU to explore reciprocal tariffs. Europe has not yet decided which goods to target. 

Tensions between Washington and the EU escalated after the recent Signal chat leaks. Vice-President JD Vance wrote, “I just hate bailing Europe out again,” to which Defense Secretary Pete Hegseth replied, “It’s PATHETIC.”

France has historically not accepted DEI programs. That is because national laws restrict how racial and ethnic data can be collected. Employers are forbidden from using a person’s background when making hiring or promotion decisions. 

According to Les Échos, the US order said, “If you do not agree to sign this document, we would be grateful if you could kindly provide us with detailed reasons, which we will forward to our legal department.” 

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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