BRUSSELS – Trade tensions between the United States and the European Union are less pronounced than they were last summer, but they continue to worsen dangerously. As the European Commission looks to get American tariffs on steel and aluminum reduced, the White House is once again calling for changes to Europe’s regulatory system in large digital sectors, before granting tariff relief.
“The European Union and its trade ministers should seriously analyze their digital regulations, not to try to ignore them, but to find a balance that satisfies us, and if they succeed, I think we can solve the steel and aluminum problem together,” explained US Commerce Secretary Howard Lutnick in Brussels, at the end of bilateral meetings.
Minister Lutnick and Trade Representative Jamieson Greer attended yesterday’s meeting of European trade ministers. Initially, Europe’s goal was to obtain guarantees from the United States regarding the reduction of steel and aluminum tariffs, currently at 50%, as well as the elimination of tariffs on goods such as wine and spirits. Import duties on steel and aluminum also affect various derivative products.
On the other hand, the American delegation took advantage of this opportunity to again ask for a revision of European regulations in the digital field. For some time, large companies in this sector have protested community regulation, which they consider too invasive. One of the complaints is the Digital Markets Act, a European regulation that “sets enforcement thresholds that are often only achieved by American companies, and is enforced quite aggressively,” with “high” fines, Ambassador Greer said. Speaking at a press conference, Trade Commissioner Maroš Šefčovič assured that the society’s regulations were “non-discriminatory”.
The United States and the European Union signed an economic agreement in the summer that set American tariffs at 15% on a whole range of goods. However, the agreement does not include steel and aluminum. We read in the agreement regarding this aspect: the parties “intend to evaluate the possibility of cooperation to protect their respective internal markets from excess production capacity, while ensuring the security of joint supply chains, including through solutions based on tariff quotas”.
