US Pushes Europe to Ease Big Tech Rules in Exchange for Tariff Relief

The United States is urging the European Union to rethink its regulatory approach to major technology companies as negotiations continue over metal tariffs and broader trade terms between the two sides.

US Commerce Secretary Howard Lutnick said Washington wants the EU to “reconsider” its digital regulations if it expects lower tariffs on steel and aluminium exports. His remarks came as American and European officials met in Brussels to review the trade arrangement agreed in July.

That deal set US tariffs on certain European products at 15% — far lower than initially threatened — in return for commitments from Europe to boost investment and allow greater access for American agricultural goods. But several sticking points remain.

European leaders had anticipated tariff relief for metal exports as part of the summer agreement. Instead, the US continues to impose a 50% duty and has increased the number of products affected. The EU is also pushing for exemptions on goods such as wine, cheese and pasta, mirroring recent carve-outs granted by the Trump administration on tropical fruits and coffee.

US Trade Representative Jamieson Greer said Washington expects Europe to honour its pledges to reduce tariffs on American goods before offering concessions. Both Greer and Lutnick linked any movement on metals tariffs to Europe’s stance on tech regulation.

“They want steel and aluminium included in this package,” Lutnick told Bloomberg Television. “We think it’s very important that they understand our digital companies and reconsider their digital regulations to be more welcoming to our major firms.”

Washington has long argued that Europe’s digital services taxes unfairly target American tech giants by levying fees on revenue from large online platforms. US companies have also pushed back against the EU’s Digital Markets Act, which aims to curb anticompetitive behaviour by dominant firms – including requirements that could force Apple devices to work more easily with third-party accessories.

Many in Silicon Valley had hoped former President Donald Trump’s return to office would spark a tougher US response to Europe’s tech rules, in contrast to the Biden administration’s more cautious approach.

European officials, however, insist the regulations are not up for negotiation. Trade Commissioner Maroš Šefčovič reiterated that position this week, saying the rules are designed to ensure fair competition, not to target US companies.