US Pressures Europe to Revisit Big Tech Rules Amid Tariff Negotiations

Trade negotiations between the United States and the European Union have entered a tense new stage as Washington signals that tariff relief for European metals may depend on the EU’s willingness to revisit rules that govern big technology companies. According to US Commerce Secretary Howard Lutnick, Europe may need to “reconsider” its digital regulations if it wants to maintain the lower tariff rates it secured earlier this year for steel and aluminium exports.

His remarks come as US and EU officials meet in Brussels to evaluate the progress of a trade framework agreed in July. The deal initially reduced tariff rates on certain European goods to fifteen percent in exchange for increased investment commitments and greater access for American agricultural products. However, disagreements have persisted, creating uncertainty for key industries across both regions.

Europe Expected More From the Summer Agreement

European negotiators entered the discussions with hopes that the July deal would bring meaningful relief to their metals sector. Producers across the continent have struggled beneath rising tariffs, and securing exemptions was a top priority. But instead of relaxing duties, the United States continued to impose rates of fifty percent on steel and aluminium, even expanding the list of affected goods.

That decision left European leaders frustrated. Many believed their willingness to accept more American agricultural products and invest more deeply in US supply chains would be rewarded with greater tariff reductions. Instead, they now face even stricter conditions, layered with political pressure connected to tech sector regulation.

European countries are also seeking more flexibility on additional items like cheese, pasta and wine. These industries want carve outs similar to those the US recently granted for imports of tropical fruit and coffee. So far, Washington has not signaled readiness to extend the same relief to Europe’s food and beverage producers.

The US Wants Europe to Act on Its Promises

US Trade Representative Jamieson Greer told reporters that Washington expects Europe to honor commitments made in the July agreement before any new exemptions can be granted. He stressed that tariff changes will only be considered when Europe delivers on its pledge to lower barriers on American goods and improve market access.

Greer and Lutnick also made it clear that digital regulations have become a major sticking point. Both officials stated that the US wants concessions from Europe regarding rules affecting America’s largest technology companies. They emphasized that the digital environment in Europe remains restrictive and needs to be revised if the EU hopes to secure favorable treatment in metals trade.

Lutnick said that Washington views Europe’s tech framework as unwelcoming to American firms. He argued that if European leaders want steel and aluminium relief, they must understand how important the digital economy is to the US and adjust regulations to create a more open environment for major technology companies.

Why Tech Regulations Are So Sensitive

For years, the United States has opposed digital services taxes, which impose fees on large technology companies earning revenue from online advertising or streaming services within Europe. Washington argues that these taxes disproportionately target American companies, which dominate global digital markets.

US tech giants have also expressed strong dissatisfaction with the Digital Markets Act, a sweeping EU regulation introduced last year to increase competition in digital markets. The law requires major platforms to follow technical interoperability requirements and restricts practices considered anti competitive. For example, it obliges Apple to allow iPhones to operate more smoothly with third party accessories and software.

American firms have long viewed these rules as an unfair burden. When Donald Trump returned to the presidency last year, many tech companies expected him to adopt a more aggressive stance toward Europe’s digital policies. Unlike the Biden administration, which often preferred negotiation and diplomacy, Trump was expected to directly push back against regulations he saw as harming US interests.

European Leaders Hold Their Ground

Despite pressure from Washington, European officials have repeatedly insisted that their digital rules are not open for negotiation. European Trade Commissioner Maroš Šefčovič echoed this position again this week. He said that when the topic was raised in Brussels, the EU reiterated its stance that regulatory frameworks designed to protect competition, consumers and market fairness would not be changed as part of trade discussions.

Šefčovič stressed that digital rules reflect long-term European priorities. According to him, ensuring a level playing field in the digital economy is essential for protecting European businesses and consumers, and therefore cannot be linked to tariff negotiations involving unrelated sectors such as steel or agriculture.

A Complex Negotiation With High Stakes

The unresolved issues highlight how intertwined trade, technology, and geopolitics have become between the US and EU. Europe wants relief for its industrial exports while the United States seeks greater freedom for its digital companies. As both sides defend strategic interests, the path toward a compromise remains uncertain.

With Brussels and Washington still divided, industries on both continents are watching closely. The decisions made in the coming weeks may influence global trade flows, digital regulation frameworks and transatlantic relations for years to come.