U.S. Demands EU Reformulate Technology Regulations to Secure Lower Steel Tariffs

U.S. officials have intensified their push for the European Union to revise its technology and regulatory frameworks, in a bid to secure reduced tariffs on U.S. imports of steel and aluminum. This demand emerged following high-level negotiations in Brussels, where U.S. Commerce Secretary and Trade Representative met with EU trade ministers. The talks marked the first major engagement since the transatlantic trade agreement in July, aimed at preventing a broader trade conflict.

At the heart of the discussions was the 15-percent U.S. tariff on most EU exports, agreed upon as a temporary measure. However, the U.S. is now pressing for additional concessions, with Lutnick explicitly linking the possibility of lower duties on steel and aluminum to a reassessment of the EU’s digital and green regulations. These rules, the U.S. contends, create a competitive imbalance for American firms operating in the European market.

Lutnick emphasized that a more balanced approach to regulation could yield substantial economic benefits for the EU, . The EU, however, has not conceded this as a red line. , the EU’s trade chief, stated that Brussels will explore ways to move forward on digital issues, but insisted that European regulations are neither discriminatory nor targeted at U.S. firms.

The broader context of the negotiations includes a shared interest in addressing global supply chain challenges. Both the U.S. and EU have expressed concerns over China’s role in the global steel industry and its impact on international markets. The EU has moved to double tariffs on foreign steel imports in an effort to protect its domestic industry, .

Efforts to form a “metals alliance” between the U.S. and EU continue, with the goal of jointly addressing overcapacity and stabilizing global trade dynamics. The EU is seeking the removal of U.S. tariffs on certain goods such as wine and spirits, while the U.S. is pushing for more favorable terms on steel imports and regulatory reciprocity.

Despite the progress made since July, EU diplomats caution that the full implementation of the trade deal remains pending. The EU’s internal approval process, which requires consensus among member states and the European Parliament, has delayed some provisions. Nevertheless, both sides have committed to continued dialogue to address unresolved issues and prevent further escalation in transatlantic trade relations.