Embassies start to distribute compliance demands, fuelling tensions international over values and business practice
The Trump administration has escalated its campaign against diversity, equity and inclusion (DEI) by targeting businesses with ties to the US federal government – sparking criticism and concern among foreign corporate leaders and officials.
According to people familiar with the matter, US embassies in multiple cities across Europe – including Paris, Brussels and Eastern Europe – have issued formal notices to multinational firms, instructing them to certify they don’t engage in DEI programming which violates what the administration describes as ‘federal anti-discrimination laws.’
Companies were given only a few days to respond.
The documents – including one titled Certification regarding compliance with applicable anti-discrimination law – state that compliance is required for any supplier or contractor doing business with the US government, regardless of where their headquarters are or where they operate.
Non-compliance could trigger penalties under the False Claims Act, the documents warn.
According to reports, a banking executive in France called the communication “crazy”, saying, “everything is now possible. The rule of the strongest now prevails.”
Letters have prompted alarm by not only business leaders, but also within governments across Europe. Reacting to the documents, France’s economy ministry said, “this practice reflects the values of the new American Government – they are not the same as ours.”
It is understood Economy Minister Eric Lombard will raise the issue directly with US officials, according to a person close to him.
The letters form part of President Trump’s broader strategy to dismantle DEI-related initiatives across sectors.
On his first day back in office this January, Trump signed an executive order directing federal agencies to dismantle programmes focused on “equity,” “environmental justice,” and other diversity-related objectives. Since then, his administration has expanded this crackdown, from university hiring to federal contractors—and now to foreign partners.
Enforcement outside of US jurisdiction remains murky, but legal and corporate advisors across Europe are reportedly weighing up the potential consequences. Several executives are said to have decided not to respond immediately, citing questions around extraterritorial applicability as well as concerns about setting a precedent.
The compliance push mirrors recent U.S. actions against domestic firms, such as Disney and several large law practices. The Federal Communications Commission has launched investigations into Disney’s diversity initiatives, questioning whether they breach employment regulations.
Although Disney recently adjusted its executive compensation metrics to downplay DEI, FCC Chair Brendan Carr said that “significant concerns remain.”
