US Pushes Europe to Reform Digital Regulations for Tech Giants in Steel and Aluminum Tariff Talks

Published: November 25, 2025 | Updated insights on US-EU trade negotiations, Digital Markets Act, and tech regulations.

Introduction

In ongoing US-EU trade discussions, the United States is pressing Europe to reconsider its regulations for large tech corporations, including the Digital Markets Act (DMA) and digital services taxes, as a condition for reducing tariffs on European steel and aluminum exports. US Commerce Secretary Howard Lutnick emphasized this stance during talks in Brussels, highlighting the need for Europe to create a more welcoming environment for American tech giants. These negotiations build on a July agreement that set US tariffs on EU goods at 15% in exchange for improved market access for US agricultural products. However, disputes persist over metals tariffs, now at 50% and expanded in scope, and potential exemptions for EU items like wine, cheese, and pasta.

This development underscores tensions in transatlantic trade relations, where digital regulations and tariffs intersect. Understanding these dynamics is crucial for businesses navigating international markets, as they could reshape competition rules for streaming services, app stores, and digital platforms.

Analysis

Background on US-EU Trade Framework

The current talks stem from a July 2025 deal between the US and EU, which capped tariffs on a broad range of European merchandise at 15%—lower than initially threatened levels. In return, Europe committed to promoting US agricultural exports through market openings and regulatory adjustments. Despite this progress, key sticking points remain, including high US duties on EU steel and aluminum.

US Demands on Digital Regulations

US officials, including Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer, have linked tariff relief to European concessions on digital regulations for large expansion corporations. Lutnick, in a Bloomberg Television interview, stated that Europe must “rethink” its rules to be more inviting to US tech firms. These rules include digital services taxes, which levy charges on revenues from large digital platforms like streaming and cloud services exceeding certain thresholds, and the DMA, enforced since 2024.

The DMA aims to foster competition by imposing obligations on “gatekeeper” companies—typically US-based giants like Apple, Google, and Meta. For instance, it requires Apple to enable iPhone compatibility with third-party devices, such as non-Apple headphones.

European Position and Ongoing Disputes

Europe seeks tariff carve-outs for metals and luxury goods like wine and pasta, similar to recent US rollbacks on tropical fruits and coffee. However, the US insists Europe first implement promised tariff reductions on American goods. European Trade Commissioner Maroš Šefčovič has firmly stated that digital rules are non-negotiable, asserting they are not discriminatory and target competition issues, not specific nationalities.

Summary

Brussels meetings between US and EU officials focus on implementing the July trade framework amid disagreements. The US conditions steel and aluminum tariff cuts (currently 50%) on Europe’s reform of EU digital regulations for tech corporations, criticizing digital taxes and the DMA as barriers to US firms. Europe pushes for exemptions while defending its rules. This standoff reflects broader US concerns under the Trump administration about fair treatment for American tech giants in European markets.

Key Points

Practical Advice

For US Tech Companies Operating in Europe

Monitor Brussels talks closely, as reforms could ease compliance burdens under the DMA. Diversify supply chains to mitigate tariff risks on hardware components affected by steel and aluminum duties. Engage trade associations like the Computer & Communications Industry Association for advocacy.

For EU Exporters of Metals and Goods

Prepare for prolonged 50% tariffs by seeking alternative markets in Asia or optimizing logistics. Lobby for carve-outs similar to those for tropical fruits, emphasizing non-competitive sectors like wine and cheese.

For Businesses in Digital Services

Ensure DMA compliance, such as interoperability for devices, to avoid fines up to 10% of global revenue. Review digital tax exposures in countries like France and the UK, where levies apply to firms over €750 million globally and €25 million locally.

Overall, conduct scenario planning: Model best-case (tariff relief via concessions) and worst-case (escalated trade barriers) outcomes to inform investment decisions.

Points of Caution

• Do not assume quick resolutions; past US-EU steel tariff disputes, like those from 2018, lasted years.
• Digital taxes remain in place across 10+ EU states, generating €5 billion+ annually, with no refunds pending negotiations.
• DMA enforcement is active: Apple faced probes in 2024 for App Store rules; non-compliance risks hefty penalties.
• Trump administration’s approach may intensify pressure, but EU unity on digital sovereignty is strong.
• Avoid over-reliance on US market access; diversify to mitigate retaliatory risks.

Comparison

Trump vs. Biden Administration Approaches

Under Biden, US tech firms largely handled DMA and tax challenges independently, with limited government intervention. Trump’s re-election in 2024 signals a shift: Expectations are high for direct challenges, akin to his first-term steel tariffs (25% on EU imports in 2018, later quota-based quotas).

Current Deal vs. Previous Frameworks

The July 2025 pact mirrors the 2021 suspension of steel tariffs but ties relief to digital concessions—a novel linkage. Unlike 2018’s Section 232 national security tariffs, current ones invoke trade imbalances. EU carve-outs for wine parallel 2025 exemptions for coffee, showing precedent for non-strategic goods.

Digital Regulations: DMA vs. Digital Taxes

DMA focuses on ex-ante competition rules for gatekeepers (revenues >€7.5B EU-wide), while digital taxes are revenue-based (3-5% on ad/digital sales). Both disproportionately affect US firms (90% of gatekeepers), per US Trade Representative data.

Legal Implications

Trade aspects fall under WTO rules and US Section 301/232 authorities, allowing unilateral tariffs if deemed unfair. The DMA, as EU law (Regulation 2022/1925), is binding in 27 member states, with enforcement by the European Commission—fines up to 10% of turnover enforceable via national courts.

Digital services taxes face US WTO challenges; a 2021 moratorium paused new levies, but unilateral DSTs persist. Any negotiated reforms could require EU legislative changes, potentially via DMA amendments. Violations of trade deals trigger dispute settlement under the US-EU Trade and Technology Council (TTC). Businesses should consult counsel on compliance, as retroactive adjustments are rare.

Conclusion

The US push for Europe to reform digital regulations on large tech corporations highlights deepening links between tariffs and tech policy in transatlantic relations. While the July framework offers a foundation, resolving steel/aluminum disputes demands mutual concessions. For stakeholders, this signals opportunities in market access alongside compliance challenges. Staying informed on Brussels outcomes will be essential as 2026 trade reviews approach, potentially stabilizing or escalating barriers for tech giants and exporters alike.

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