Stop EU Overreach Act

The Stop EU Overreach Act directs the United States Trade Representative to initiate a formal investigation within 30 days of enactment to determine if specific European Union environmental and sustainability regulations unfairly burden American commerce. These targeted measures include rules on corporate sustainability due diligence, reporting, deforestation traceability, and carbon border adjustments that apply to US companies based on their operations or supply chains outside the EU. If the investigation concludes that these foreign practices are unreasonable or discriminatory, the USTR is authorized to take retaliatory actions such as imposing duties on imports from EU member states or suspending trade agreement benefits. The bill includes a sunset provision that terminates its requirements for any specific EU measure once the USTR certifies that the European Union has repealed the rule or entered into a binding agreement to exempt US persons from its extraterritorial obligations.