On 20 January 2025, Donald Trump signed an executive order banning diversity, equity and inclusion (DEI) programs in the US federal sector.
The order, called “Ending Radical And Wasteful Government DEI Programs And Preferencing“, also targets companies that have contracts with the US government. Now the demands seem to have reached Europe as well, reports The Financial Times.
Affected companies are being urged to certify their compliance with Trump’s directive – or risk losing their contracts.
“We inform you that Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-based Opportunities, signed by President Trump, applies to all suppliers and service providers of the US Government, regardless of their nationality and the country in which they operate“, the letter reads, according to reports from France24.
French telecom giant Orange is one of the companies that received the demand, even though it has no operations in the US. Reuters reports that the demand surprises French officials, who do not expect American influence on purely European companies.
The Trump admin has ordered French firms with U.S. contracts to follow his DEI ban, sparking concerns over U.S. influence on European businesses. France’s finance minister plans to take up the issue with Washington. #DEI #TrumpPolicy
Read more: https://t.co/8C5V7zOnw1 pic.twitter.com/gc6nwdBfO4— Fourth Pillar Post (@Post4th) March 29, 2025
French anger
France’s trade ministry reacts strongly and condemns Trump’s actions. A spokesperson reportedly states that “US interference in French companies’ inclusion policies is unacceptable, just like its unjustified tariff threats”.
The Trump administration is backing the claims, citing US laws such as the False Claims Act, which gives the US the right to impose conditions on federal contractors, including foreign companies.
However, EU lawyers question whether this extends to companies without a US presence.
Trade tensions loom
European companies thus appear to have to choose between complying with US demands or sticking to their own values, in the light of Donald Trump’s announcement.
Media reports from France and elsewhere say that most French executives are considering ignoring the letters, while others see legal obstacles to complying.
Donald Trump’s demands risk creating further tensions between the EU and the US, as several European governments see the move as a threat to national sovereignty.