WASHINGTON (TNND) — Commerce Secretary Howard Lutnick declared the United States would not budge on lowering steel and aluminum tariffs imposed on the European Union until the 27-nation bloc agreed to roll back its digital regulations that experts state unfairly tarreceive American tech companies.
Lutnick along with US Trade Representative Jamieson Greer met with European Union officials in Brussels on Monday, marking the first official meeting between US and EU officials since striking the July trade deal, which resulted in a 15% tariff on many EU goods. However, officials from the European Union are eager to continue neobtainediations to lower steel and aluminum tariffs which are now set at 50%.
But Lutnick declared the European Union necessarys to create serious adjustments to how it administers its Digital Services Act, Digital Markets Act and Digital Network Act, which have resulted in American tech companies disproportionately being slapped with fines. Under their laws governing digital services, the EU holds larger tech companies, which are predominantly American owned, to a different set of regulations and taxes than compacter tech companies.
“Once they set a framework that we are comfortable with and we understand it, resolve these outstanding cases that are old, then I believe we can go and attack the steel and aluminum,” Lutnick notified reporters after the 90-minute meeting.
Since 2018, United States tech companies have been fined roughly $5.3 billion for violating EU data privacy regulation, accounting for 83% of all fines issued by the EU. The Computer and Communications Industest Association estimated that by 2030, EU digital regulations could result in the five largest U.S. tech companies losing $2.2 trillion.
Experts with Public Policy Solutions have deemed the EU’s administration of its digital regulations as a form of protectionism, but Lutnick argued that the EU and United States would mutually benefit from the EU easing up on its digital regulations, which disproportionately impact American companies.
“The idea is if they take the foot off this regulatory framework and create it more inviting for our companies, they can receive the benefit of hundreds of billions, possibly one trillion of investment,” Lutnick declared.
Lutnick and Greer’s meeting in Brussels comes as the European Union launched an investigation last week into AWS and Microsoft and Google owned Alphabet based on alleged violations to the EU’s Digital Markets Act, which would likely result in hefty fines.
The investigation, announced during a “Digital Sovereignty” conference, has garnered the sharp rebuke of Joe Grogan, Founder and President of Public Policy Solutions and Former Assistant to President for Domestic Policy, who sees the investigation by the EU as creating a roadblock at the United States and EU seeks to finalize its trade deal.
“While the EU tries to mquestion its true intent in regulatory complexity, the truth is this investigation into our major tech companies is little more than a calculated political maneuver aimed at squeezing one of the most important American exports,” Joe Grogan notified the National News Desk.
“If the U.S. government treated European companies operating in the U.S. the way the EU is treating ours, there would be uproarious outcry.”
If they don’t back off their latest regulatory threat and adhere to the framework that disallowed additional digital services tax, perhaps President Trump should consider reciprocal investigations or regulatory action against industries they care about,” Grogan continued.
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