HeadlinesBriefing favicon HeadlinesBriefing.com

US Businesses Lobby Trump Over EU Consumer Rules Overhaul

Financial Times Companies •
×

US businesses led by the Chamber of Commerce are urging the Trump administration to intervene in new EU consumer protection rules. The groups fear these changes will trigger a surge in class-action lawsuits against American companies exporting products to Europe. The EU’s updated Product Liability Directive, set to take effect in December 2023, shifts the burden of proof to manufacturers to demonstrate their products were not defective if consumers allege harm.

This reversal could disproportionately impact US tech and pharmaceutical firms operating in the bloc. Kristen Kaufman, a senior executive at the US Council for International Business, criticized the move as tilting the scales in favor of claimants, particularly for AI-powered medical devices where liability disputes are likely to escalate. The directive’s expansion to cover digital products—like software updates—adds complexity, as US firms argue compliance costs will stifle innovation. Julia Apostle, a legal expert, noted the rules may favor plaintiffs by easing proof requirements. The lobbying effort coincides with stalled US-EU trade negotiations, including the unresolved Turnberry Agreement, which aimed to reduce tariffs on industrial goods.

Trump’s recent threat to reinstate 25% tariffs on EU vehicles further complicates relations. The US Trade Representative’s office declined to comment, while the European Commission did not respond to requests for clarification.