Trade discussions between the US and EU have placed tech regulation tariffs at the forefront, with the US requesting modifications to EU digital sector rules as a condition for decreasing tariffs on aluminium and steel imports from the bloc, Reuters reported.
At a meeting in Brussels, EU ministers asked US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer to follow through on the July trade agreement, which included lowering US tariffs on EU steel and removing duties on products like spirits and wine.
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Lutnick responded that the EU must first make its digital regulations more balanced.
Lutnick did not outline the changes the US was seeking but suggested that balanced regulations could attract trillions in investments for the EU.
The Trump administration is said to have “consistently criticised” EU rules that limit the influence of large tech companies and necessitate online platforms to address harmful content, arguing that these measures disproportionately affect US companies.
According to Wired, the European Commission (EC) continues to request compliance from US tech companies under the Digital Services Act (DSA) and Digital Markets Act (DMA), although appeals have slowed progress.
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By GlobalDataApple and Google have recently voiced strong concerns about the DMA, highlighting ongoing tensions.
In August, the Federal Trade Commission reportedly warned that some DSA rules might conflict with US laws, especially regarding freedom of expression and US citizens’ security.
Wired also noted that the EU’s AI law came into effect in August last year, with a key milestone expected in 2026 and full implementation by August 2027.
Citing the Financial Times, Wired reported that the initial review of possible amendments may occur towards the end of 2026 as part of the broader Digital Omnibus package.
Previously, when asked whether changes to the DMA were part of EU-US tariff negotiations, EC Vice-President Teresa Ribera told Bloomberg TV: “Of course not. We do not challenge the US on how they adopt regulations. I think we deserve respect in the same way.”
The commission has maintained that it is the EU’s sovereign right to regulate and has cited actions taken against non-US companies, according to Reuters.
European Trade Commissioner Maros Sefcovic said that EU technology regulations are not discriminatory.
Under the agreement reached at the end of July, the US imposed 15% tariffs on most EU goods, while the EU agreed to eliminate several of its tariffs on imports from the US.
However, the required approval by the European Parliament and EU governments means that changes may not take effect until March or April, a delay that has frustrated Washington, according to EU diplomats.
The EU has emphasised the importance of progress on agreed issues, particularly regarding steel and aluminium.
At present, the US imposes a 50% tariff on these metals and, since mid-August, has extended this to 407 “derivative” products including motorcycles and refrigerators, with the possibility of more products being added soon.
EU diplomats have expressed concern that such measures, along with potential new tariffs on trucks, critical minerals, aircraft and wind turbines, could undermine the July agreement.
The EU is also seeking to have a wider range of its products, such as biotech, medical devices, olives, pasta, spirits and wines, subject to lower pre-Trump tariffs.
According to Reuters, Greer noted that the EU must remove tariffs on US imports before further discussions can start.
The EU has indicated its willingness to discuss regulatory cooperation, the bloc’s purchases of US energy, which is said to have reached $200bn (€172.85bn) in 2025, and joint efforts on economic security, especially in response to Chinese export restrictions on rare earths and semiconductors.
Wired reported that the EC is likely to end the year with little progress on its key technology policy initiatives, with some measures potentially being reversed.
There are concerns that changes could weaken the EU AI Act and prompt major reconsiderations of the DSA and DMA, as well as the Digital Networks Act (DNA) and the EU Space Act, both of which face legal challenges.
Technology firms, supported by President Trump’s administration, have urged the EU to ease restrictions.
The DNA, initially scheduled for year-end, has been delayed by the EU Commission.
Discussions on the act are now postponed until late January 2026, provided member states can reach an agreement.
Significant disagreements remain, especially regarding the phase-out of copper networks and the expansion of the Body of European Regulators for Electronic Communications, the regulatory authority.
The US has formally opposed the EU Space Act, noting that the proposed legislation would limit the activities of US companies by imposing operational restrictions, Wired noted.
In July 2025, President Trump and Japanese negotiators reached a trade agreement to lower the tariff rate on Japanese imports into the US to 15%.
