Donald Trump’s recent policy decisions as U.S. President have sent ripples through the global economic and environmental landscape. From imposing hefty tariffs on key trading partners to rolling back plastic reduction measures, these changes directly affect businesses subject to the Corporate Sustainability Reporting Directive (CSRD), as well as ESG consultants, auditors, and sustainability and finance professionals.

New tariffs: a challenge for sustainable business

Since returning to the presidency in January 2025, Donald Trump has revived his protectionist trade policies, reintroducing tariffs that have sparked an immediate global reaction. In early February, the US administration announced a 25% tariff on imports from Canada and Mexico, alongside a 10% tariff on Chinese goods, arguing that these measures were necessary to safeguard American industry. The response was swift: China filed a formal complaint with the World Trade Organisation and introduced countermeasures targeting key US exports.

Meanwhile, Canada hit back with 25% tariffs on $30 billion worth of American products, and Mexico signalled that it might follow suit. These developments have reignited trade tensions between Washington and its North American and Asian partners, injecting fresh uncertainty into global markets.

In Europe, news of the tariffs has rung alarm bells in Brussels and across the continent’s major economies. Trump has already warned that further tariffs on European car imports will be announced in April, a move that could have serious consequences for German, French, and Italian manufacturers, whose industries are heavily reliant on the US market. The European Union has voiced strong concerns, making it clear that it will retaliate if Washington presses ahead with measures that threaten European businesses. Within the European Parliament and across corporate circles, fears are growing that a trade war with the US could escalate, impacting key sectors such as machinery, steel, and technology. With the deadline for potential tariffs fast approaching, transatlantic trade is heading into one of its most uncertain periods in recent memory.

For businesses subject to CSRD, such policies create additional hurdles in maintaining sustainable practices. Supply chain instability may make it harder to source responsibly produced materials and meet environmental standards. Rising costs could also limit investment in sustainability initiatives, forcing companies to rethink their ESG strategies.

The return of plastic: a step back in environmental progress

On the environmental front, Trump has signed an executive order banning biodegradable paper straws in federal buildings, reinstating plastic ones. His administration argues that paper straws are ineffective and costly, but environmentalists and sustainability advocates see this as a major step backwards.

This reversal in single-use plastic reduction policies could have significant consequences for businesses committed to sustainability. By actively promoting plastic, which is petroleum-based, Trump’s administration is undermining global efforts to tackle pollution and cut carbon emissions.

For companies that have already invested in cutting plastic waste and embracing circular economy principles, this shift in U.S. policy could bring several challenges:

• Stronger pressure from stakeholders: Investors and consumers focused on sustainability will demand more transparency on how companies manage plastic waste.
• Potential regulatory changes on a global scale: Businesses with operations in the U.S. may need to adjust their plastic reduction strategies to align with more lenient policies.
• Negative ESG reporting impacts: A resurgence of single-use plastics could affect sustainability reports, potentially harming ESG ratings.