The Trump administration has sent a letter to large companies in the EU, warning them to comply with an executive order banning diversity, equity, and inclusion (DEI) programs. This order applies to companies outside the US if they are suppliers or service providers to the American government. The letter was dispatched by the American embassy in Paris and other embassies across the EU, and was accompanied by a questionnaire demanding companies attest to their compliance. The document, titled “Certification regarding compliance with applicable federal anti-discrimination law,” emphasizes that Department of State contractors must certify they do not operate DEI programs that violate any anti-discrimination laws, as such certification affects government payment decisions and is subject to the False Claims Act.
The letters have sparked controversy, with some companies expressing surprise and concern, particularly in France, where the French foreign trade ministry criticized what it called American interference in French companies’ inclusion policies. Some executives and advisers are choosing not to respond to the letters, as the extraterritorial application of the executive order may not be enforceable under initial legal assessments.
The letters also reflect growing tensions between the Trump administration and Europe, particularly concerning economic and security policies. This comes amid a backdrop of trade disputes, with Trump recently imposing a 25% levy on auto imports and increasing tariffs on European steel and aluminum. The EU is considering reciprocal tariffs in response but has not yet decided which products to target.
In France, DEI programs have not traditionally gained traction due to legal restrictions on collecting racial and ethnic data. French employers are prohibited from considering an individual’s ethnic or racial background in hiring or promotion decisions. French companies exposed to these demands could include those in the aviation, defense, consulting, and infrastructure sectors, though the FT has not yet confirmed which companies received the letter.
The letter also warned companies that failure to sign the certification would require them to provide a detailed explanation, which would be forwarded to the US legal department. This action reflects the administration’s increasing efforts to regulate DEI practices internationally, extending its influence to foreign companies that engage with the US government.