The US and Europe remain deadlocked over trade tariffs, with Europe pressing for the US to implement the July agreement to reduce aluminum and steel duties. However, the US insists that the European Union (EU) first address its digital sector regulations.

During a meeting in Brussels, European Union ministers urged US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer to honor the agreement reached by both sides in July. This agreement involves reducing import tariffs on aluminum and steel, and waiving tariffs on various EU goods such as wine and spirits.

However, Lutnick stated that the EU first needs to review its digital sector regulations to achieve a more balanced situation. "Once they have a policy framework that makes us comfortable and clear, and addresses long-standing issues, then the aluminum and steel tariff issue can be dealt with," Lutnick told reporters after the meeting. He did not specify what changes the US requires, but affirmed that balanced regulations would help Europe attract trillions of USD in investment capital.

US Commerce Secretary Howard Lutnick at the White House in 5/2025. Photo: Reuters

The administration of US President Donald Trump has consistently criticized the EU this year, arguing that the bloc's regulations restrict the power of tech giants. They accuse these regulations of unfairly targeting American tech companies.

The European Commission (EC) asserts its right to regulate and implement various measures for non-US businesses. EU Trade Commissioner Maros Sefcovic stated that their regulations are not discriminatory. "The regulations do not target American companies, but this is one of the issues they wish to discuss. We are ready to respond when the US demonstrates its ability to meet the requirements," he said.

According to the trade agreement from July, the US would impose a 15% import tariff on most goods from the EU. Meanwhile, the EU agreed to remove many import tariffs on US goods. However, ratification by the European Parliament and member state governments can only be completed by 3/2026 or 4/2026. European diplomats indicated this is making Washington impatient.

Europe also seeks progress on several issues, particularly steel and aluminum tariffs. The US currently imposes a 50% tariff on these two metals and products containing them. EU diplomats stated that these tariffs, along with the possibility of new US tariffs on trucks, essential minerals, aircraft, and wind turbines, are threatening the trade agreement. They also want tariffs reduced to levels predating Trump's second term for various products such as wine, spirits, olives, pasta, medical devices, and biotechnology. Greer, however, declared that the EU needs to remove tariffs on US goods before discussing this.

Ha Thu (according to Reuters)