Lutnick Is Exploring ‘Trade Tools’ to Target ESG Rules in EU (2)

The US may use “trade tools” to retaliate against European ESG regulations that affect American companies, said Howard Lutnick, US President Donald Trump’s pick to become commerce secretary.

Lutnick was referring specifically to the Corporate Sustainability Due Diligence Directive. He told Republican senators last month that he’s concerned by the extent to which environmental, social and governance regulations formulated in Brussels are impacting US businesses.

Under CSDDD, companies face litigation risks if their value chains are found to contain ESG violations. They also must implement net zero transition plans. And like most European Union ESG regulations, ...