US demands ‘balanced’ digital laws from the EU before discussing steel tariffs

Washington has signaled that it could put the reduction of high tariffs on European steel on the table if this framework for digital platforms is “balanced.”

Speaking after talks between US and EU representatives during a meeting of EU trade ministers in Brussels, US Trade Representative Howard Lutnick argued that the current regulations specifically target large US-based digital platforms.

Lutnick said, “Our suggestion is that the European Union and their trade ministers deeply consider trying to analyze their digital rules, try to come away with a balance, not put them away, but find the balanced approach that works with us ... then we will, together with them, handle the steel and aluminum issues and bring that on together”

The US currently imposes a 50% tariff on EU steel. In addition, since mid-August, additional tariffs have been imposed on the metal content of 407 different “derivative products,” ranging from motorcycles to refrigerators. The US administration has indicated that new products may be added to the list next month.

At the top of Washington's list of criticized regulations are the EU's Digital Markets Act and its associated rules. These regulations impose strict obligations on large online platforms, with penalties of billions of euros possible for non-compliance. U.S. officials argue that the thresholds and enforcement framework disproportionately affect American technology companies.

The EU side rejects these criticisms. EU Trade Commissioner Maros Sefcovic emphasized that the bloc's digital regulations are not discriminatory, while acknowledging that the issue remains sensitive for Washington and that further negotiations are needed. Sefcovic also said that the EU wants to reduce tariffs on steel and steel derivatives and accelerate cooperation with the US on supply chains.

The Commissioner recalled that the EU had submitted the necessary legislative proposals for tariff reductions in line with the agreement reached in August, and that the US had also taken retroactive reduction steps on some taxes.