Europe’s due diligence rule is a risk for US manufacturers

The European Union ‘s Corporate Sustainability Due Diligence Directive is sold with lofty rhetoric about sustainability and responsibility, but in reality, it’s an unprecedented regulatory overreach. For U.S. manufacturers operating in or trading with the EU, it represents a European power play that piles on red tape, threatens jobs, and exports foreign bureaucracy straight into the American economy.

At its core, the CSDDD requires companies to identify, prevent, and mitigate human rights and environmental risks not only within their own operations but across their global supply chains. For manufacturers, that means tracking every supplier and contractor, from raw materials to final assembly. Firms with the most rigorous compliance programs face the reality that supply chains are va