(Brussels) The United States is demanding that the European Union amend its digital regulatory rules in order to reach an agreement on reducing US tariffs on EU steel and aluminum.
US Commerce Secretary Rutnick and Trade Representative Greer met with trade ministers from the 27 EU member states in Brussels on Monday (November 24). The EU wants the US to reduce its 50% tariffs on steel and aluminum products, while Washington is demanding that Brussels withdraw digital regulations that the US believes harm US companies.
After a 90-minute meeting, Rutnick explicitly linked the two issues, stating that if the EU wants the US to reduce tariffs on European steel and aluminum products, it should re-examine its approach to technology regulation.
He said, "Our suggestion is that the EU and its trade ministers should carefully review and analyze their digital regulations and try to find a balance."
"When they (the EU) set a framework that we can accept and understand, and resolve those long-standing issues, we can then move on to the steel and aluminum issues."
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Lutnik pointed out that the EU needs to resolve outstanding legal cases against US tech giants, including Alphabet's Google, Microsoft, and Amazon. "Our idea is that if they (the EU) relax these regulatory frameworks and make our companies more willing to invest, they could reap hundreds of billions, even potentially up to $1 trillion (approximately S$1.3 trillion) in investment returns."
US President Trump and his administration have consistently opposed the EU's increased legal oversight of large tech companies. In September, Trump threatened retaliatory tariffs in response to the EU's massive €2.95 billion (approximately S$4.43 billion) fine against Google.
Despite this, the EU continues to enforce its digital antitrust regulations, recently issuing fines of €500 million and €200 million to Apple and Meta respectively.
In response to the US demands, EU Trade and Economic Security Commissioner Šefčovič said, "We will study how to initiate this process on digital issues."
However, he emphasized that the EU's regulations are not discriminatory or targeted at US companies.
The European Commission has also repeatedly stated that the EU possesses regulatory sovereignty. European Commission Vice-President for Antitrust, Ricardo Rivera, ruled out the possibility of relaxing EU technology regulations, stating that EU digital regulations were not within the scope of negotiations. "The EU established these regulations to ensure fair markets, protect consumer rights, and safeguard Europe's digital future," Rivera said.
"It is our responsibility to uphold our values and defend our people," he added.
Lutnik and Greer's visit marked the first official visit to Brussels since the EU and US reached a trade agreement in July. The agreement stipulates that the US will impose a 15% tariff on some EU goods, while the EU has pledged to eliminate tariffs on many US imports.
Besides the crucial issue of steel tariffs, the EU and US also discussed shared challenges such as rare earth elements and semiconductors.
Denmark's Foreign Minister Rasmussen, whose country holds the rotating EU presidency, said, "Our discussions not only covered bilateral issues but also some of the challenges we face together: overcapacity…China's role in the global economy, and other issues that must be addressed together."
The EU hopes to establish a broader "metals alliance" with the US to jointly address China's steel overcapacity, and Šefčovič has been pushing for the US to agree to steel import quotas.
