Brussels: The United States urged on Monday the European Union to reconsider its approach to digital regulation if it wants to reach an agreement to lower US tariffs on European steel exports. The call came after a meeting between US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer with the trade ministers of the EU's 27 member states in Brussels, marking the first such gathering since both sides agreed last July on a 15 percent US levy on most EU exports.
According to Kuwait News Agency, Lutnick told reporters after the meeting that the EU should "deeply consider trying to analyse their digital rules, try to come away with a balance." He emphasized that if a balanced approach is achieved, it could pave the way for addressing the steel and aluminium issues. Lutnick further noted that such an approach could potentially unlock "a trillion dollars of investment," boosting European GDP by a point and a half.
EU trade commissioner Maros Sefcovic did not comment on whether the EU's digital rules were a sticking point, but maintained that "the EU's rules are not discriminatory and are not aimed at American companies." The EU is advocating for a reduction of the existing 50-percent US duties on steel and aluminium, while the US is linking progress in this area to the easing of environmental and digital regulations in Brussels, which it argues harm major US firms.
In concurrent discussions, both European and American officials tackled shared challenges, including access to rare earths and microchips crucial for the technology sector. Danish Foreign Minister Lars Lokke Rasmussen, whose country currently holds the rotating EU presidency, mentioned that the talks also delved into "overcapacity and China's role in the global economy," highlighting the importance of collaboration to address these issues.