Washington negotiates steel tariffs for European digital deregulation
Since Monday, November 24, trade negotiations between the United States and the European Union have shifted to new ground. Howard Lutnick, the US Secretary of Commerce, and Jamieson Greer, the Trade Representative, have explicitly linked two distinct issues: a reduction in tariffs on steel and aluminum in exchange for a relaxation of European digital regulations. This strategy marks an escalation in trade tensions following the July agreement.
A Fragile July Agreement Under Commercial Pressure
The agreement reached on July 25 between Ursula von der Leyen and Donald Trump aimed to restore trade stability between the two economic blocs. This arrangement included a 15% US tariff on most European exports, while the EU committed to purchasing $750 billion of American energy by January 2029.
However, this agreement remains fragile and has yet to be approved by the European Parliament. Concerns persist about potential additional tariffs on critical minerals or wind turbines, which could jeopardize the entire deal. The United States is now demanding more concessions, while Brussels is insisting on a 50% reduction in tariffs on steel and aluminum. This new tension reveals that the summer agreement, despite its appearances, has not resolved the structural differences between Washington and Europe. Both parties continue to highlight persistent disagreements, turning these negotiations into an economic tug-of-war as each side seeks to gain additional advantages.
Digital Regulations at the Heart of a Trade Blackmail
Washington is specifically targeting the Digital Markets Act (DMA) and the Digital Services Act (DSA), two pillars of European digital regulation. According to Jamieson Greer, the US trade representative, these laws set thresholds often met only by American companies, with enforcement considered aggressive and fines substantial. The US government believes these regulations unfairly penalize American tech giants and discourage them from heavily investing in Europe, particularly in artificial intelligence.
Howard Lutnick, US Secretary of Commerce and billionaire, explicitly made this connection during Monday's meeting, stating that if the EU revised its regulatory approach, a steel agreement could become feasible. Donald Trump has also repeatedly criticized these laws following the €2.95 billion fine imposed on Google in September, even threatening punitive tariffs in response. This conditional linkage strategy presents Brussels with a dilemma: maintain its regulatory framework or yield for tariff reductions. The United States, aware of the economic impact of tariffs on member states' economies, is exploiting potential internal divisions within the Union.
Europe's Unstable Balance
Brussels has so far maintained that its digital legislation does not discriminate against American companies and that the rules fall under its sovereignty. However, cracks are appearing in this common stance. Germany, in particular, is advocating for a relaxation of regulations, arguing that without modern artificial intelligence models, Berlin will not have a promising digital future. German Economy Minister Katherina Reiche has clearly indicated that her country wants the ability to integrate AI into its industrial processes, suggesting some flexibility on the restrictive rules.
Other member states are directly affected by tariffs, creating tension between the principled position championed by Brussels and national economic concerns. Nonetheless, the Union remains vigilant on fundamental issues: the control of personal data and the regulation of speech on social networks remain matters of sovereignty for Europe. The next European Parliament will determine whether Brussels yields to American trade pressures or maintains its regulatory framework regardless of tariff retaliation.
This content has been automatically translated using artificial intelligence. While we strive for accuracy, some nuances may differ from the original French version.
