U.S. Leverages Steel Tariffs to Press EU on Digital Regulations
The U.S. is using its steel and aluminum tariffs as leverage to push the European Union to reconsider its digital regulations. Commerce Secretary Howard Lutnick told EU ministers that relief from the current 50% tariffs on European metals will be contingent on a “more balanced” regulatory environment for American tech companies operating in Europe.
The tariffs, which stem from a July 2025 trade agreement, have already strained transatlantic relations. While the EU sought reductions to ease the impact on industries such as steel, aluminum, wine, and spirits, Lutnick linked tariff relief directly to adjustments in EU tech rules, which the U.S. views as restrictive and protectionist.
European officials are treading cautiously. EU Trade Commissioner Maros Sefcovic expressed hope for progress but warned that immediate breakthroughs were unlikely, emphasizing the importance of the EU’s digital strategy for economic sovereignty.
The standoff affects not only trade but also broader issues of market fairness and technological competition. With tariffs still in place, EU businesses face ongoing economic pressure, while U.S. policymakers signal that regulatory concessions in the digital sphere are a prerequisite for future relief.
The outcome of these negotiations will have significant implications for transatlantic trade and the future of digital competition in Europe, as both sides weigh economic interests against regulatory independence.
