US demands 'balanced' EU digital laws before easing steel tariffs

BRUSSELS

The US on Monday urged the EU to revise and "balance" its digital sector rules before Washington agrees to lower tariffs on European steel.

After a meeting between the two sides' trade representatives on the sidelines of the EU trade ministers' gathering in Brussels, US Commerce Secretary Howard Lutnick argued that Europe's current framework for digital platforms placed disproportionate burdens on companies, many of which are American.

"Our suggestion is that the European Union and their trade ministers deeply consider trying to analyze their digital rules, try to come away with a balance, not put them away, but find the balanced approach that works with us ... then we will, together with them, handle the steel and aluminum issues and bring that on together," he said.

The US currently maintains a 50% tariff on steel and, since mid-August, has extended this duty to the metal content of 407 "derivative" products, including items like motorcycles and refrigerators. More products could be added to the list next month.

The EU's Digital Markets Act and related rules impose strict requirements on large online platforms, with violations leading to hefty fines — an approach long criticized by Washington. US officials say the thresholds and enforcement practices disproportionately affect American companies.

EU Trade Commissioner Maros Sefcovic stressed that the bloc's digital rules are non-discriminatory. However, he acknowledged that digital regulation remains a priority concern for Washington and will need further discussion.

Brussels, he said, wants to move "with lightning speed" to lower tariffs on steel and its derivatives and deepen cooperation with Washington on industrial supply chains.

Sefcovic said the EU had already tabled legislative proposals to cut tariffs in August as agreed, noting that the US has likewise begun applying retroactive reductions on certain duties.

Both sides emphasized their goal of preserving a cooperative transatlantic trade agenda, particularly amid shared economic security challenges and efforts to manage overcapacity in the global steel market.