"Germans React to Donald Trump's DEI Ultimatum", 3 April 2025

Germany's leading industry group is warning companies not to cave in to what it sees as overreach by the U.S. government.

It follows the Trump administration's moves to restrict Diversity, Equity, and Inclusion (DEI) initiatives—even beyond U.S. borders.

American embassies issued letters to foreign contractors, including in Germany, instructing them to comply with a Trump executive order aimed at dismantling DEI programs. The move prompted immediate pushback across Europe and a diplomatic clarification from the U.S. State Department...

The Federation of German Industries (BDI), which represents Germany's largest industrial firms, took a firm stance. "The BDI views with great skepticism the efforts of the U.S. government to enforce political ideas with regard to corporate guidelines beyond its own national borders," the group said in a statement, according to Reuters...

The U.S. State Department attempted to clarify the policy after facing international backlash. It stated that embassies were only asking contractors to self-certify that they comply with U.S. antidiscrimination laws, not undergo verification procedures.

"There is no 'verification' required beyond asking contractors and grantees to self-certify their compliance," the department said in a statement, as reported by The New York Times. It also noted that the requirement should apply only to companies controlled by U.S. employers and employing American citizens, a stance that appeared to contradict the broader language in the embassy letters.

The original letters referenced President Donald Trump's executive order signed on his first day back in office. That order instructed all federal contractors to abandon DEI programs, describing them as forms of "illegal discrimination."

Businesses across multiple countries voiced confusion and concern over the sudden compliance demands, especially given that many operate under strict national labor laws that support DEI frameworks. The Federation of German Industries said: "Corporate principles apply regardless of which government is in power in which country. We therefore encourage companies to stick to their principles." The BDI is expected to continue encouraging firms to follow local laws rather than altering corporate policy to suit foreign political directives...