Donald Trump
Donald Trump
The Donald Trump administration has issued directives requiring European companies, particularly those in France, to certify compliance with an executive order banning Diversity, Equity, and Inclusion (DEI) programmes if they wish to maintain federal contracts, according to reports.
The move has triggered strong reactions from business leaders and the French government, which has rejected the demand as an overreach to European corporate policies.
According to a report in the Financial Times, the US embassy in Paris and other American diplomatic missions across the European Union have sent letters to major corporations, warning that Trump’s executive order applies to foreign firms supplying goods or services to the American government.
The letter affects industries ranging from aviation, defence, and infrastructure to consulting, insurance, and industrial suppliers.
The embassies also circulated a questionnaire, titled Certification, regarding compliance with applicable federal anti-discrimination law. The questionnaire requires companies to confirm they do not operate DEI initiatives that could be seen as violating US anti-discrimination laws.
The Financial Times, citing sources familiar with the situation, reported that the certification process is considered a material requirement for payments under the U.S. government’s False Claims Act. This has raised concerns about potential financial and legal consequences for non-compliant companies.
The letters were reportedly sent in France, eastern European nations, and Belgium.
The directive has sparked alarm in French business circles. The French finance ministry has raised concerns after being alerted by affected companies.
French newspaper Les Échos, which first reported the letter, quoted a section of the note: “We inform you that Executive Order 14.173….also applies mandatorily to all suppliers and service providers of the American Government, regardless of their nationality or the country in which they operate.”
The letter instructs companies to sign and return the certification within five days, attesting that they “do not operate any programs promoting diversity, equity, and inclusion.”
The announcement also warned that those refusing to comply must provide detailed reasons, which the US government’s legal department will receive.
According to data cited by the FT, the US government’s supplier registry includes between 10,000 and 20,000 non-American firms from over 100 countries, meaning the directive could affect a significant number of European businesses.
But legal experts and corporate advisers have suggested the order’s extraterritorial nature may make it difficult to enforce, with some French firms considering ignoring the directive.
The controversy comes at a time of heightened tensions between the US and Europe over economic policy.
Earlier this week, Trump imposed an additional 25 per cent tariff on auto sector imports from the EU and raised duties on European steel and aluminium.
The European Commission is preparing reciprocal measures.
The US-Europe rift was further highlighted when leaked messages from US officials revealed scepticism about Washington’s role in European security.
The DEI directive is the latest sign of the Trump administration’s efforts to push its domestic policy agenda onto the global stage.
In France, strict legal limitations on collecting racial and ethnic data have historically shaped workplace diversity policies.