Overview

• The Trump administration has extended its ban on diversity, equity, and inclusion (DEI) programs to foreign companies holding U.S. government contracts, demanding compliance through embassy-issued letters.
• France and Belgium have strongly condemned the directive, calling it an infringement on sovereignty and a violation of international agreements such as the Vienna Convention.
• Some European companies have begun scaling back DEI initiatives to maintain U.S. contracts, while others refuse to comply, emphasizing their commitment to local laws and values.
• Danish and Dutch officials have called for a coordinated European response, with Denmark labeling the move a potential trade barrier and the Netherlands expressing concern over its impact on businesses.
• The European Commission is expected to evaluate the situation, but no formal response has been issued as diplomatic tensions between the U.S. and Europe escalate.