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US links EU tech rules to steel tariff cuts in trade talks
Brussels - The United States urged the European Union on Tuesday to revise its digital regulations for major tech firms if it seeks reduced tariffs on steel and aluminum exports, US Commerce Secretary Howard Lutnick stated during trade negotiations.
Talks between US and EU officials in Brussels this week focus on the July trade agreement, which lowered US tariffs on European goods to 15%-less than initially threatened-in exchange for EU pledges on agricultural market access and investment. However, key disputes persist, including the US's 50% duty on EU metals and expanded product levies.
Steel tariffs tied to digital rules
Speaking to Bloomberg Television, Lutnick framed the steel tariff issue as contingent on Europe's approach to digital companies:
"They would like to have steel and aluminum as part of this package, and we think it is very, very important that they understand our digital companies and reconsider their digital regulations to be more inviting to our big companies," he said.
US Trade Representative Jamieson Greer echoed the demand, stating that Washington expects the EU to fulfill commitments on lowering tariffs for American goods before granting exemptions. The US has long argued that EU digital taxes-targeting revenue from streaming and advertising giants-disproportionately affect US firms.
EU defends digital policies
The US tech sector has also criticized the EU's Digital Markets Act (DMA), enacted last year to foster competition by requiring interoperability (e.g., Apple's iPhones supporting third-party headphones). Industry leaders had hoped President Trump's re-election would intensify US pushback against the rules, contrasting with the Biden administration's more hands-off stance.
EU Trade Commissioner Maroš Šefčovič reaffirmed the bloc's position on Monday, insisting its digital framework is
"not discriminatory... not aimed at American companies."
Maroš Šefčovič, EU Trade Commissioner
Broader trade tensions
The EU continues to seek exemptions for products like wine, cheese, and pasta-similar to recent US rollbacks on tropical fruit and coffee tariffs. Yet progress remains stalled as both sides dig in on metals and digital policies.
Analysts note the talks reflect deeper transatlantic frictions: while the EU prioritizes industrial relief, the US leverages trade negotiations to address longstanding tech-sector grievances.
