Advance by US Minister Lutnick
Lower US tariffs for relaxed digital rules?
Lower tariffs on steel for relaxed EU digital rules? US Commerce Secretary Lutnick indicates willingness to reach a deal. EU Trade Commissioner Sefcovic makes it clear: the EU’s sovereign legislation is not up for negotiation.
US Secretary of Commerce Howard Lutnick has promised lower tariffs on steel and aluminum if the EU adjusts its digital rules. If the responsible EU ministers can find a “balanced approach” with regard to the EU’s digital rules, which I believe is possible, then we will work with them to tackle the steel and aluminum problem and find a solution, Lutnick said after a meeting in Brussels.
The EU is, among other things, a thorn in the side of import tariffs of 50 percent that the USA imposes on steel and aluminum imports from the community of states. These are also putting a strain on German industry. In view of several proceedings by the EU Commission against US companies – including Google, Amazon, Apple and Microsoft – US President Donald Trump once again criticized the EU digital rules. The laws on digital services (DSA) and digital markets (Digital Markets Act – DMA) are particularly criticized.
USA has significant concerns about EU digital rules
“The United States has had significant concerns about the Digital Markets Act and similar legislation in the EU for many years,” said US Trade Representative Jamieson Greer in Brussels. Often US companies are almost exclusively affected, enforcement is sometimes aggressive and the fines can be very high.
About a week ago, the EU Commission announced that it wanted to examine whether certain cloud services from US tech companies Amazon and Microsoft had to adhere to stricter European digital rules.
After US Minister Lutnick’s request, the commission promptly said: “Steel and digitalization have nothing to do with each other.” Steel has always been part of the discussions with the USA. “Our sovereign legislation in the area of digitalization is not up for negotiation.” EU Trade Commissioner Maros Sefcovic said after the meeting that EU laws were not discriminatory and were not directed against US companies.
Reiche is pushing for fewer tech rules
Federal Minister of Economics Katherina Reiche also used the Americans’ visit to Brussels for a personal meeting. After the conversation with US government representatives, the CDU politician advocated for fewer EU tech rules and greater use of artificial intelligence (AI or AI in English) in the German economy.
“Germany has made it clear that we want opportunities to play in the digital world and to implement AI in our industrial processes,” said Reiche. The German minister said it was not just the Americans who were critical of European digital legislation. “Without implementing AI models, there will be no good future,” she said. That’s why the federal government is also traveling to Brussels to promote relief. Specifically, Reiche cited DSA and DMA as examples.
Lutnick attracts with high investments
The US Secretary of Commerce also promised the EU that American companies would invest a lot of money in the EU if the confederation of states changed its digital laws. In the USA, seven companies have each invested $500 billion in building data centers. “If the European Union finds a way to create balanced digital rules, I think it could achieve a trillion dollars in investment,” Lutnick said.
In the middle of last week, the EU Commission presented a comprehensive digital package that also includes a weakening of the EU AI law. The proposal stipulates that parts of the rules could only be enforced later and AI companies would be allowed to access more data. In addition, data protection laws should be changed. However, DSA and DMA remain essentially unaffected by the current Commission proposal.
Deal months ago – details still open
In the customs dispute between Brussels and Washington, there has actually been a fundamental agreement on an agreement for months. But there are still open details about the controversial deal. Among other things, there is a struggle to implement a joint declaration published in August.
In the summer, EU Commission President Ursula von der Leyen and US President Trump agreed that a basic tariff rate of 15 percent would apply to most EU imports to the US. There were previously significantly higher taxes in the room. To this end, von der Leyen has promised, among other things, that the EU wants to buy US energy worth $750 billion by the end of Trump’s term in office.
EU Trade Commissioner Sefcovic said the EU’s strategic energy purchases in liquefied natural gas (LNG), nuclear energy and oil had already reached $200 billion this year. The US share of the EU’s LNG imports increased from 45 to 60 percent. In addition, EU investments in the USA have also increased to around 150 billion euros since January.
