The European Union rejected a US request to ease its strict digital regulations in exchange for a reduction in US tariffs on steel and aluminum.
The rejection came after US Commerce Secretary Howard Lutenick directly linked the EU’s digital regulations to the 50% tariffs on European metal imports.
The European Commission has asserted that its digital framework is non-negotiable and aims to protect consumers and ensure fair competition.
Brussels is seeking exemptions from US tariffs while simultaneously imposing hefty fines on American technology companies like Apple and Meta.
The dispute comes at a time when Europe fears that the range of goods subject to high tariffs could widen, potentially weakening the recent trade agreement between the two sides.
U.S. Commerce Secretary Howard Lutenick had pledged to reduce tariffs on steel and aluminum products imported from the European Union if the EU amended its rules for the digital technology sector, following his meeting with EU trade ministers in Brussels.
“If the ministers can come up with a balanced approach, which I believe they can, we will work with them to address the steel and aluminum issues,” Lutnick said after the meeting.
The European Union is striving to find a way to reduce the 50% tariffs imposed by Washington on steel and aluminum imports from the bloc. These tariffs are particularly burdensome for German industry.
Meanwhile, US President Donald Trump has consistently criticized the European Union’s digital rules in light of numerous lawsuits filed by the European Commission against US technology companies, including Google, Amazon, Apple and Microsoft.
The EU’s Digital Services Act and Digital Markets Act are causing sharp disagreements with Washington.
“The United States has been very concerned for many years about the Digital Markets Act and similar legislation in the European Union,” said U.S. Trade Representative Jamieson Greer, who participated in the talks, adding that U.S. companies are often almost exclusively affected, that enforcement of the law is “sometimes very strict,” and that fines can be exorbitant.
