US demands EU soften tech rules for tariff relief

The European Union has accused the United States of “blackmail” after Washington asked Brussels to soften its digital rules in exchange for easing tariffs on steel and aluminium. European Commission Vice‑President Teresa Ribera said the United States is trying to undermine the EU’s flagship Digital Markets Act and Digital Services Act, which impose strict competition and transparency requirements on large online platforms. The United States views the legislation as discriminatory because most of the affected companies—Microsoft, Google, Meta and Amazon—are American‑based.

U.S. Commerce Secretary Howard Lutnick recently told Europe it should “reconsider its digital regulations to be more inviting to our big companies” if it wants a deal on steel and aluminium. Ribera responded that the EU’s digital rulebook “is not up for negotiation” and must not be folded into trade discussions. She called the U.S. request “blackmail” and affirmed that the bloc will not compromise on its digital framework.

The dispute stems from a U.S.–EU trade agreement reached in July, which set a 15 % tariff on most European exports to the United States. In return, the EU pledged to expand long‑term purchases of U.S. energy and to maintain broad market access for American goods. European media and business groups have criticized the deal as one‑sided, arguing it puts EU manufacturers at a disadvantage. The EU regards its digital legislation as a matter of sovereignty; Ribera stressed that the bloc respects the rules and regulations of other markets, including those of the United States.

Other countries have also voiced concerns about the trade deal. Russian Foreign Minister Sergey Lavrov warned that it could accelerate “deindustrialisation” in Europe by redirecting investment to the United States. The episode highlights ongoing tensions between the U.S. and the EU over trade and digital regulation, with the EU determined to protect its digital markets and maintain sovereignty.

The EU’s digital rules are designed to promote competition and transparency, and the bloc is unlikely to compromise on these principles. As trade negotiations continue, it remains to be seen how the United States and the European Union will resolve their differences and reach a mutually beneficial agreement. The outcome will have significant implications for the global digital economy and the future of U.S.–EU trade relations.