The Trump administration is intensifying its push against Diversity, Equity, and Inclusion (DEI) programs by warning European companies with U.S. government contracts to comply with Executive Order 14173, which bans such initiatives. U.S. embassies, including those in Paris and other European Union nations, have sent letters to companies, demanding they certify compliance within five days to avoid losing their contracts.

This action has drawn sharp criticism from European business leaders and government officials, particularly in France, where the policy clashes with the country’s secular approach to data collection, which prioritizes gender and socioeconomic status over race or ethnicity. French officials have denounced the U.S. directive as unwarranted interference in their business practices.

In response, French Finance Minister Aurore Bergé is set to engage with U.S. officials, defending French companies and highlighting the tensions over differing cultural and policy approaches. These developments add to the growing strain between the U.S. and Europe, exacerbated by ongoing trade disputes and U.S. tariffs on European goods.

The Trump administration’s stance on DEI is also influencing international companies beyond Europe. Firms in countries like Japan and Switzerland have begun rethinking their U.S. DEI policies to align with the new directive, with companies such as Roche Holding AG and Nissan Motor Co. modifying their policies for U.S. operations while keeping their global programs intact.