The US is urging Europe to revisit its digital rules for major technology companies, linking the issue to the possibility of reduced American tariffs on European steel and aluminium. The message came as officials from both sides met in Brussels to evaluate the trade framework agreed in July.
Tariff Relief Still Unsettled
The summer deal set US tariff rates on certain European products at 15%, a lower rate than initially expected, in exchange for European investment commitments and measures that expand access for American agricultural goods. But disagreements remain, especially around metals.
European officials had expected progress on relief for steel and aluminium exports. Instead, the US continues to impose a 50% duty and has broadened the list of affected products. EU negotiators are also pushing for carve-outs on items such as wine, cheese and pasta, similar to recent exemptions granted by the Trump administration for tropical fruit and coffee.
US Seeks Concessions on Digital Rules
US Trade Representative Jamieson Greer said Washington wants Europe to deliver on its pledges to lower tariffs on American products before granting exemptions. He and Commerce Secretary Howard Lutnick added that the US wants concessions on EU digital regulations as part of the metals discussion.
“They would like to have steel and aluminium as part of this package and we think it is very, very important that they understand our digital companies and they reconsider their digital regulations to be more inviting to our big companies,” Mr Lutnick told Bloomberg Television.
Longstanding Disputes Over Digital Taxes
The US has repeatedly argued that digital services taxes disproportionately affect American firms, particularly those earning revenue from streaming services and digital advertising. Big tech companies have also objected to the EU’s Digital Markets Act, which took effect last year and includes requirements such as making devices like Apple’s iPhone interoperable with third-party accessories.
After Donald Trump’s re-election, some tech firms hoped he would take a more aggressive stance against Europe’s digital rules, in contrast with the previous administration, which left most challenges to the companies themselves.
Europe Holds Firm on Regulatory Autonomy
European officials have consistently stated that their digital regulations are not negotiable. EU Trade Commissioner Maroš Šefčovič reiterated that position on Monday, saying the rules are designed to support competition and do not target US firms.
“This is not discriminatory. It is not aimed at American companies,” he said.
Featured image credits: Markus Winkler via Unsplash
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