The U.S. State Department is attempting to address diplomatic tensions in Europe following the issuance of letters by American Embassies to foreign contractors. These letters instructed companies in countries such as France, Spain, Denmark, and Belgium, which hold contracts with the U.S. government, to certify compliance with President Trump’s policies aimed at dismantling diversity programs.
The letters have sparked backlash from European companies and officials, who characterized the move as a pressure campaign by the Trump administration to enforce anti-diversity policies internationally.
In response to the growing controversy, the State Department clarified late Tuesday that the compliance requirement applies only to companies “controlled by a U.S. employer” and that employ U.S. citizens. This clarification contradicted the embassy letters, which indicated that Trump’s directives applied to all U.S. government suppliers and contractors, irrespective of their nationality or operational location.
The State Department reiterated that American Embassies and missions are reviewing contracts and grants to ensure alignment with an executive order signed by Trump, which prohibits federal contractors from participating in diversity, equity, and inclusion programs, labeling them as “illegal discrimination.”
According to the State Department, the embassy letters merely request contractors to self-certify their compliance with applicable U.S. federal anti-discrimination laws, stating, “There is no ‘verification’ required beyond asking contractors and grantees to self-certify their compliance.”
The embassy letters represent another action by the Trump administration that has unsettled European officials, who are already wary of a trade conflict as Trump prepares to announce potentially severe tariffs on various nations, including major trading partners.
The extent of the letter's distribution among European companies remains unclear, and its enforceability is uncertain. However, the Belgian government has lodged a formal protest with the U.S. Embassy, expressing concern over perceived U.S. pressure on European firms to abandon diversity initiatives.
Belgium’s deputy prime minister, Maxime Prévot, emphasized that the U.S. Embassy must adhere to Belgian laws, warning that terminating contracts based solely on a company's commitment to diversity could violate the Vienna Convention on Diplomatic Relations.
Trump’s directives on diversity have created anxiety among corporate leaders in the U.S., but the administration's attempts to impose these policies on European workforces have faced resistance, particularly in countries like Italy, which uphold strong labor rights.
European companies have long endeavored to enhance the representation of women, minorities, and disabled employees, aiming to reflect the demographic makeup of their societies.
In Denmark, where companies also received the letter, Industry Minister Morten Bødskov stated that Danish and European firms bear significant responsibility for diversity, with local regulations designed to promote this responsibility. He described the U.S. actions as potentially another form of trade barrier and indicated that discussions with European colleagues would follow.
In France, companies that received the letter expressed their concerns during a meeting with government officials. The communication prompted a rare coalition of government, corporate, and labor union leaders in opposition to the U.S. policy.
France’s foreign trade minister, Laurent Saint-Martin, pledged to protect companies from U.S. policies that he argued would compel them to abandon diversity practices in compliance with French and European law. Patrick Martin, president of France’s largest employers association, Medef, stressed that French companies “cannot give in” to what he described as Trump’s bid for control over the global economy and European values.
The C.F.D.T., France’s leading trade union, urged companies to resist U.S. intimidation and not to comply with the certification request, labeling it as a submission to the Trump administration.