Europe’s Regulations Cost U.S. Firms

Two newly adopted EU directives — the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D) — extend compliance obligations to non‑EU companies above global‑revenue thresholds and to their entire value chains. That extraterritorial reach will force many large American companies (and their suppliers) to prepare transition plans, conduct broad due diligence, and consult wide stakeholder lists, imposing compliance costs and operational changes across global supply chains. — If true, these rules materially shift the cost of doing business for major U.S. firms, reshape global supply‑chain governance, and raise questions about regulatory sovereignty and competitiveness.