US Links lower steel tariffs to EU tech concessions, putting Brussels in a bind

The United States is pressuring the European Union to roll back parts of its digital regulations targeting American tech giants in exchange for progress on reducing steep U.S. tariffs on EU steel and aluminum.

U.S. Commerce Secretary Howard Lutnick said Washington is ready to negotiate a “cool steel and aluminum deal” — but only if Brussels eases rules from the Digital Markets Act and Digital Services Act, which heavily regulate major online platforms such as Google, Amazon and Meta.

The stance puts the EU in a difficult position. Brussels has repeatedly insisted that its technology and tax rules are not up for negotiation in trade talks. At the same time, the 50% U.S. tariffs on European steel and aluminum — recently expanded to cover additional products — are hitting European industry hard. German Economy Minister Katherina Reiche warned that machinery exports to the U.S. have stalled, with companies suffering “considerable declines in sales.”

Lutnick and U.S. Trade Representative Jamieson Greer held meetings in Brussels on Monday with EU trade ministers and digital policy chief Henna Virkkunen. According to the European Commission, Virkkunen defended the EU’s regulatory framework while highlighting recent proposals to simplify AI and data rules.

Washington argues that U.S. tech companies face unfair treatment in Europe, pointing to multi-billion-euro antitrust fines. Lutnick said it was time to “settle the outstanding cases” and build a more “inviting” environment for American firms — promising that easing regulation could unlock “hundreds of billions, possibly $1 trillion” of investment.

For now, the EU maintains its red line: tech rules will not be part of the bargain. But with tariff pressure mounting and the economic cost rising across the continent, the standoff is becoming increasingly difficult to sustain.

Irina Zelenenko