EU rejects US demands to soften sustainability rules

The United States and the European Union are having a disagreement about rules.

The US says some EU rules about protecting the environment and people's rights make it too hard for American companies to do business in Europe.

The US wants the EU to make these rules easier for companies.

The EU says no, its rules are important and it will decide its own rules.

The United States also thinks some Chinese goods are sneaking into the US through other countries to avoid paying taxes.

The US is worried the EU might be part of this problem.

The EU says it also wants to stop tax cheating and customs fraud.

The US says it might take more action if the EU does not change its rules.

Both sides are still talking to each other and calling the talks constructive.

But they still disagree on what should happen next.