<\/p>\n
(Bloomberg) —<\/p>\n
US Commerce Secretary Howard Lutnick said the European Union needs to change its digital regulations in order to get a deal to lower steel and aluminum tariffs.<\/p>\n
Most Read from Bloomberg<\/p>\n
\u201cWe are talking to them about\u201d rolling back EU tech rules, Lutnick said in an interview with Bloomberg Television. \u201cIn exchange for that, we will come up with a cool steel and aluminum deal.\u201d<\/p>\n
WATCH: Commerce Secretary Howard Lutnick says the US has talked with the European Union about rolling back tech rules in exchange for \u201ca cool steel and aluminum deal.\u201dSource: Bloomberg <\/p>\n
Lutnick and US Trade Representative Jamieson Greer were in Brussels on Monday for their first official visit since reaching a trade deal with the EU in July.<\/p>\n
The deal set a 15% US tariff on many EU goods, while the EU pledged to erase tariffs on US industrial products as well as some agriculture and food items. The two sides also vowed to keep working to lower other tariffs, including a 50% levy on EU steel and aluminum, which the bloc has now matched with its own 50% tariff on steel imports above a certain quota.<\/p>\n
What bothers European officials and companies is the changing scope of President Donald Trump\u2019s sectoral tariff authority \u2014 far beyond the ability to target the raw metals themselves. Since the US-EU deal, Washington has broadened the steel tariffs to include many items that weren\u2019t subject to duties at the time.<\/p>\n
Lutnick made clear any steel and aluminum deal is contingent on the EU rolling back some of its regulations on major American tech companies.<\/p>\n
\u201cThe idea is if they take the foot off this regulatory framework and make it more inviting for our companies, they can get the benefit of hundreds of billions, possibly $1 trillion of investment,\u201d Lutnick said.<\/p>\n
Lutnick\u2019s direct linkage between the two issues puts the bloc in a difficult bind. The EU has consistently said it will not let other countries dictate its tech rules. But the metals tariffs are also causing bruising economic harm across the continent.<\/p>\n
\u201cRegarding steel and aluminum, we must achieve additional relief,\u201d German Economy Minister Katherina Reiche told reporters on Monday. \u201cMany machines that have been produced can\u2019t be delivered to the US and our companies are suffering from considerable declines in sales.\u201d<\/p>\n
Before having lunch with EU trade ministers, Lutnick and Greer also met with EU technology czar Henna Virkkunen to discuss digital regulations.<\/p>\n
Story Continues <\/p>\n
<\/p>\n
According to the European Commission, which handles trade for the EU, Virkkunen stressed the importance of the bloc\u2019s two central tech rulebooks, the Digital Services Act and the Digital Markets Act, which regulate online platforms and marketplaces. She also ran through a recent EU proposal to slash AI and data protection rules in the hopes of reducing bureaucracy.<\/p>\n
At a midday briefing, a commission spokesperson reiterated the bloc\u2019s stance that it would not negotiate its tech and tax rules as part of trade talks with the US.<\/p>\n
\u201cYes, this is absolutely still the case,\u201d the spokesperson, Thomas Regnier, told reporters.<\/p>\n
The Trump administration has long fumed that the EU treats American tech giants unfairly, pointing to both its regulations and large fines the bloc has imposed on firms like Google, which is facing a nearly \u20ac3 billion ($3.4 billion) antitrust penalty.<\/p>\n
\u201cLet\u2019s settle the outstanding cases,\u201d Lutnick said. \u201cLet\u2019s put them behind us.\u201d<\/p>\n
He added: \u201cLet\u2019s come up with a reasonable framework where these companies can grow and build.\u201d<\/p>\n
After Monday\u2019s meetings, EU trade chief Maros Sefcovic said he wanted to reassure Lutnick that the bloc\u2019s digital rules \u201care not discriminatory\u201d and \u201cnot aimed at US companies.\u201d<\/p>\n
\u201cWe just simply need to do more of explanation in that regard,\u201d he told reporters.<\/p>\n
But Greer, speaking alongside Sefcovic, countered that the rules often include thresholds that only capture US firms. He also said compliance with the laws \u201ccan become challenging,\u201d called the EU\u2019s enforcement \u201cquite aggressive at times\u201d and noted that \u201cfines can be quite large.\u201d<\/p>\n
–With assistance from Iain Rogers and Matt Shirley.<\/p>\n
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