Trump pauses enforcement of anti-bribery law for American companies

On February 10, 2025, in the Oval Office, President Donald Trump signed an executive order pausing prosecutions related to bribery of foreign officials, aiming to alleviate perceived obstacles for U.S. companies in international business dealings. This decision directs Attorney General Pam Bondi to halt the enforcement of the Foreign Corrupt Practices Act, originally established to prevent corrupt practices by American corporations abroad. Trump's criticism of the law, enacted by President Jimmy Carter in 1978, emphasized its hindrance to negotiating deals overseas, suggesting that business practices expected in such contexts often involve bribery. By claiming that the anti-corruption measures impose significant disadvantages, he argued that they create an uneven competitive landscape between American companies and foreign entities who might engage in these practices without restrictions. In addition to pausing enforcement of the law, the executive order includes a directive for the Justice Department to review previous enforcement actions and develop new guidelines that could ultimately reshape the framework within which American corporations operate internationally. Trump's administration insists that the suspension of the Foreign Corrupt Practices Act enforcement is necessary to protect U.S. economic interests and national security, portraying it as a move to streamline interactions between U.S. corporations and foreign governments. However, critics argue that this action undermines ethical standards and accountability in international business. This shift in policy comes amid broader changes within the federal government, with Trump also removing key figures responsible for overseeing federal ethics and whistleblower protections, underscoring a trend towards diminishing regulatory oversight. While he asserts that the order will pave the way for smoother transactions, the broader implications on corruption and ethical business practices raise concerns among observers about the viability of oversight in a challenging international marketplace. Overall, the executive order reflects a profound realignment in U.S. corporate governance laws, focusing on enhancing competitiveness while inviting scrutiny regarding the ethical ramifications as American companies navigate an increasingly globalized economy. The decision has sparked debate over the balance between fostering international business opportunities and upholding accountability standards for corporate conduct abroad.