---
title: "US embassies globally tell suppliers to comply with Trump ban on diversity policies"
description: "MADRID, March 31 (Reuters) - The Trump administration has warned local suppliers to U.S. embassies and consulates as well as recipients of U.S. grants worldwide that they must comply with its ban on Diversity, Equity and Inclusion (DEI) programmes or risk losing payments."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Newsdeck"
author: "Reuters"
author_url: "https://www.dailymaverick.co.za/author/reuters/"
canonical_url: "https://www.dailymaverick.co.za/article/2025-03-31-us-embassies-globally-tell-suppliers-to-comply-with-trump-ban-on-diversity-policies/"
published: "2025-03-31T21:51:20"
updated: "2025-03-31T21:51:22"
lang: "en-ZA"
word_count: 675
---

# US embassies globally tell suppliers to comply with Trump ban on diversity policies

> MADRID, March 31 (Reuters) - The Trump administration has warned local suppliers to U.S. embassies and consulates as well as recipients of U.S. grants worldwide that they must comply with its ban on Diversity, Equity and Inclusion (DEI) programmes or risk losing payments.

By Reuters · Published 31 March 2025, 23:51 SAST · Updated 31 March 2025, 23:51 SAST

## Key points
- In a classic case of "America First," U.S. embassies are pressuring foreign suppliers to ditch their Diversity, Equity, and Inclusion policies, leaving companies caught between Uncle Sam's executive orders and local laws that champion inclusivity—talk about a diplomatic pickle!
- U.S. embassies are pressuring local suppliers to abandon Diversity, Equity, and Inclusion (DEI) policies, citing compliance with federal anti-discrimination laws.
- Companies affected include utility providers and media outlets, facing potential payment freezes for non-compliance.
- The Spanish government condemns this directive as a "flagrant violation" of local anti-discrimination laws, warning of investigations for compliance attempts.
- Major firms like BMW and various French companies have also received similar compliance requests, igniting tensions over U.S. influence on European corporate practices.

## Content

- Embassies have told local suppliers to drop Diversity, Equality and Inclusion policies
- Companies impacted include embassy utilities suppliers and newspapers selling subscriptions
- Spanish government say companies who comply with US directive would be breaking progressive local laws

"The U.S. embassy in Spain, like all of our embassies around the world, is communicating to our local suppliers of products and services the new framework based on the recent executive orders signed by President Trump," said a spokesperson for the U.S. Embassy in Spain.

"We want to ensure that our contracts comply with all federal anti-discrimination laws and that suppliers do not operate programmes that promote diversity, equity and inclusion in violation of existing federal laws," the spokesperson added.

The written warnings reflect U.S. President Donald Trump's ambition to extend outside the U.S. an [executive order](https://www.reutersconnect.com/all?search=all%3AL3N3OI09U&linkedFromStory=true) issued in January that directed government agency chiefs to dismantle DEI policies at federal agencies, federal contractors and in the private sector.

This has created a [legal standoff](https://www.reutersconnect.com/all?search=all%3AL6N3PW0WB&linkedFromStory=true) back home, after years in which U.S. companies have embraced DEI policies that track race and ethnicity data and set diversity targets in hiring and other corporate practices.

According to the letter sent to companies outside the U.S., failure to submit the required information and confirm compliance will result in a freeze on payments.

Reuters has been unable to establish how many companies have received letters nor how much their combined contracts are worth.

But the anti-DEI pressure from Washington hashighlighted the extraterritorial reach of U.S. policies and their potential impact on European corporate practices.

The U.S. State Department did not immediately return a request for comment on the letters containing the warning.

Other "America First" policies pursued by Trump have stoked economic and political tensions between the U.S. and Europe since his January 20 inauguration, at a time when his actions on tariffs and security ties have upended transatlantic relations.

Companies abroad with U.S. contracts have been told to confirm their compliance with Trump's crackdown on DEI in a questionnaire entitled "Certification Regarding Compliance With Applicable Federal Anti-Discrimination Law".

'FLAGRANT VIOLATION' OF LOCAL LAWS, SPAIN SAYS

The instructions are understood to have been sent to a wide range of firms including those supplying the homes of U.S. embassy staff with water, gas and electricity, to newspapers to which embassies subscribe, and catering suppliers.

The Spanish Labour Ministry said the American directive was a "flagrant violation" of Spain's strict anti-discrimination and diversity laws, and companies seeking to comply would face investigation by the Labour Inspectorate.

American Space Barcelona, based at the Spanish city's Sant Andreu municipal library, is one Spanish organisation to have received the letter as it includes a project that gets funding from the U.S. Embassy. The project provides English-language resources, cultural programmes and educational guidance and information about the United States.

Barcelona Mayor Jaume Collboni told local media the letter was part of a "reactionary avalanche" being driven by the Trump administration "against Europe and the democratic values that we defend".

Major German carmaker BMW has received a letter from the U.S. Embassy in Bulgaria to which it has sold vehicles, asking it to address questions to its DEI policy, a person familiar with the matter said.

In a statement to Reuters, BMW said it believes that "diverse perspectives and talents strengthen our company" and "contribute to increasing our innovative strength and competitiveness".

"Discrimination in any form has no place in our company," it said. "We will continue our activities on ESG (environmental, social and governance) topics as planned. We do not follow short-term trends in these areas either, but pursue a clear plan of moderation and balance."

[Some French companies](https://www.reutersconnect.com/all?search=all%3AL6N3QC01V&linkedFromStory=true) with U.S. government contracts have also been ordered to comply with Trump's DEI ban.

"American interference in the inclusion policies of French companies, along with threats of unjustified tariffs, is unacceptable," France's Ministry of Foreign Trade said in a statement sent to Reuters last week.

(Reporting by Aislinn Laing and Christina Amann; with additional reporting from Humeyra Pamuk in Washington; writing by Charlie Devereux; editing by Mark Heinrich)