The United States is conditioning the reduction of tariffs on European steel and aluminum on changes to the EU’s digital enforcement, as the two sides continue to negotiate the details of the trade agreement reached in July.
Talks between Washington and Brussels are showing increasing difficulties in closing the outstanding aspects of the trade agreement agreed in July, according to meetings held this week. The United States maintains a 50% tariff on more than 400 European products containing steel and aluminum, an extension that the EU considers contrary to the spirit of the agreed trade framework.
The U.S. Secretary of Commerce has stated that any tariff relief requires the EU to adopt a “more balanced” approach in the application of its digital rules, especially those affecting large U.S. technology platforms. Washington insists that the current regulation penalizes these companies, while Brussels defends that the regulation is not discriminatory and is part of its regulatory autonomy.
Brussels stresses that rules such as the Digital Markets Act and the Digital Services Act apply equally to all companies operating in the European market. Authorities have recently opened investigations into platforms such as Amazon and Microsoft and imposed sanctions in competition cases, reinforcing their advocacy of a strong regulatory framework.
However, while the European Commission has reiterated that it will not negotiate its digital legislation, although it has advanced simplification initiatives, including an omnibus package that introduces adjustments to the General Data Protection Regulation and involves a possible pause in the implementation of parts of the Artificial Intelligence Act.
This context has fueled concerns in the European Parliament and among civil organizations, which fear that these changes will be perceived as concessions to the US.
Europe insists that the agreed 15% tariff cap should be applied more broadly, including to aluminum derivatives and products currently subject to 50%. European lawmakers have warned that they will not back further tariff reductions in the EU until Washington lowers its own levies.
At this week’s meetings, European officials raised the need to make progress on industrial issues and to jointly confront global challenges such as China’s overcapacity, although the U.S. made it clear that this cooperation does not imply an automatic easing of its tariffs.
Pending further contacts , the relationship between tariffs and digital regulation remains the main obstacle to reaching a definitive understanding.