Trump Administration's DEI Ban Extends to French Companies Holding U.S. Contracts

The Trump administration has directed French companies with U.S. government contracts to adhere to an executive order banning diversity, equity, and inclusion programs. Companies must complete a compliance questionnaire, raising concerns about wider implications across European businesses.

The Trump administration has issued directives to French companies with U.S. government contracts to comply with an executive order banning diversity, equity, and inclusion (DEI) programs. This initiative mandates companies to confirm compliance through a questionnaire titled 'Certification Regarding Compliance With Applicable Federal Anti-Discrimination Law.' Reuters has accessed this questionnaire.

French business daily Les Echos broke the news, indicating the U.S. embassy in Paris sent the letter to the firms. The letter referenced Executive Order 14173, 'Ending Illegal Discrimination and Restoring Merit-based Opportunities,' which requires all U.S. government suppliers to comply, irrespective of nationality or operational location.

The directive, requiring a five-day response, has stirred concerns within European boardrooms about escalating U.S. policies against DEI. An official near the French Finance Minister, Eric Lombard, stated the issue would be addressed with U.S. officials, highlighting differing governmental values. Reuters reports difficulty identifying involved companies, though defense and infrastructure sectors are at risk.

(With inputs from agencies.)