Nashville Standard

United States Senator Bill Hagerty (R-TN) and Representative Andy Barr (R-KY-06) have sent a letter urging Treasury Secretary Janet Yellen and senior Biden-Harris Administration officials to address regulatory encroachment from the European Union. This follows the EU's adoption of the Corporate Sustainability Due Diligence Directive (CSDDD) in May, which enforces social and climate policies as binding international law.

“The CSDDD’s extraterritorial scope amounts to a serious breach of U.S. sovereignty and a direct threat to the global competitiveness of American companies,” wrote the members of Congress. They expressed concern that the administration is "surrendering its regulatory responsibilities to European officials."

The directive could force U.S. businesses to comply with European policies or face penalties, raising concerns about supply chains, litigation risks, and climate transition requirements. The letter calls for delaying CSDDD’s implementation and working with European counterparts to repeal or modify it.

The letter was co-signed by several Senators including Mike Crapo (R-ID), Lindsey Graham (R-SC), John Thune (R-SD), among others, and Representatives such as Jodey Arrington (R-TX-19), Dan Bishop (R-NC-08), Buddy Carter (R-GA-01), among others.