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By Sean O'Driscoll
Senior Crime and Courts Reporter
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European companies might circumvent President Donald Trump's anti-diversity, equity and inclusion (DEI) program, a legal expert has told Newsweek.
Why It Matters
The controversy tests how much independence thousands of foreign companies have in the U.S. market and whether they are legally obliged to follow Trump's social programs.
Read More
Germans React to Donald Trump’s DEI Ultimatum3 min read
Denmark, Netherlands React to Trump’s DEI Ultimatum5 min read
Europe Map Shows Countries Defying Trump’s DEI Order6 min read
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What To Know
European companies have received letters from the U.S. government warning that Trump's executive order banning "illegal" DEI programs would be enforced internationally.
The letters demand that companies with U.S. contracts exporting to the U.S., or operating in the U.S., confirm within five days that they comply with U.S. federal antidiscrimination laws and do not operate any DEI programs that violate them.
Trump's action has been condemned by leaders in the European Union, where many countries have diversity programs.
Greg Germain, a law professor at Syracuse University in New York, told Newsweek that European companies may be able to circumvent Trump's order.
"An interesting question is whether the foreign suppliers may be able to circumvent Trump's rules by using different corporate entities for their contracts with the U.S. government from the entities used to provide goods and services to others," Germain said.
"If they are able to use different entities for contracts with the USA, they would be able to certify that the entities dealing with the USA comply with the USA's rules, without changing the corporate policies used by their other entities that do not supply goods and services to the USA."
Those new companies dealing with the U.S. would be compliant with Trump's laws, while the parent company could retain its diversity programs.
What People Are Saying
Aurore Bergé, France's equality minister, said on X, formerly Twitter: "We have principles and laws and we intend that they be respected, despite what the U.S. Embassy says."
France's Ministry of Foreign Trade said in a statement to Reuters: "American interference in the inclusion policies of French companies, along with threats of unjustified tariffs, is unacceptable."
France's Ministry of Foreign Affairs said: "France and Europe will defend their businesses, their consumers, and also their values."
Belgian Deputy Prime Minister Jan Jambon told RTL-TVI: "In Europe, we have a culture of nondiscrimination and we must continue this. It is not the boss of America who should give us lessons."
What Happens Next
A European Union challenge before the World Trade Organization is increasingly likely.
Denmark's Industry Minister Morten Bodskov told AFP that there would be a united EU front against "yet another attempt at an American trade barrier."
A European Commission spokesperson told Newsweek that the U.S. rule would have to respect the WTO General Procurement Agreement.
The statement added that the Commission did not yet have sufficient information to assess if this would be the case.
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