House Republicans introduced legislation on Thursday that would require federal trade officials to investigate European Union environmental regulations, targeting policies that proponents of the bill say place heavy financial burdens on American businesses.
The legislation, introduced by Rep. Craig Goldman (R-Texas) alongside co-leads Rep. Greg Steube (R-Fla.) and Rep. Jodey Arrington (R-Texas), is titled the “Stop EU Overreach Act.” If passed, it would direct the United States Trade Representative to open a Section 301 investigation within 30 days.
The probe would evaluate whether specific EU sustainability mandates represent unreasonable or discriminatory trade practices that burden U.S. commerce.
The bill targets four major EU policies: the Corporate Sustainability Due Diligence Directive, the Corporate Sustainability Reporting Directive, the Deforestation Regulation, and the Carbon Border Adjustment Mechanism. These rules mandate global supply chain tracking, emissions reporting, deforestation-free traceability, and third-party auditing for large companies operating or earning significant revenue within European markets.
According to a study by the Hudson Institute cited in the bill’s announcement, initial compliance costs for American firms under the Corporate Sustainability Due Diligence Directive alone could range between $637 billion and $1.093 trillion, with recurring annual costs reaching up to $43 billion.
Lawmakers supporting the bill argued that the regulations extend beyond Europe’s borders to impact American operations.
“American companies should answer to American law, not to bureaucrats in Brussels,” Steube said. “The EU is trying to export its regulatory agenda onto our farmers, manufacturers, and small businesses through the back door, and it’s going to cost them billions of dollars they don’t have to spend.”
Goldman added that the rules challenge domestic sovereignty alongside their financial impact. “The EU’s extreme, green energy mandates don’t just threaten to impose over a trillion dollars in compliance costs on American businesses; they’re also a clear challenge to America’s sovereignty,” Goldman said.
The bill notes that other nations—including Argentina, Australia, Brazil, India, South Africa, and the United Kingdom—have raised similar concerns regarding the international reach of the European mandates.
Under the proposed statute, the USTR would have 12 months to complete the investigation, consult with affected industries, and submit findings to Congress. If the trade representative determines the EU rules unfairly burden U.S. trade, the agency would consider remedies under Section 301 of the Trade Act of 1974, which can include trade agreement suspensions or compensatory import duties on European goods.
The legislation has been referred to committee and is co-sponsored by Reps. Gus Bilirakis (R-Fla.), Randy Weber (R-Texas), Warren Davidson (R-Ohio), and Buddy Carter (R-Ga.). It has received an endorsement from the Small Business and Entrepreneurship Council.
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