Maroš Šefčovič left meetings in Washington this week warning that Brussels won't reopen its flagship tech laws, even as high US tariffs on steel and aluminium remain unresolved. The EU trade commissioner said the bloc is ready for a structured digital dialogue with Washington, after talks that produced cooperation on critical minerals but made little headway on metals. The standoff leaves industry and trade policy-makers facing a clash of regulatory priorities and tariffs.

Digital rules on the table

Maroš Šefčovič travelled to Washington to press for talks on digital legislation. He said the EU won't erase its rules. The Digital Services Act and the Digital Markets Act remain in force. They're designed to tackle illegal content and curb abuses by dominant tech platforms.

Šefčovič told reporters, "We can't give anything that concerns our legislation, but we're ready to talk." He framed the approach as practical. The goal is a digital dialogue on shared problems like online safety and fair competition.

The White House has urged Brussels to ease rules it sees as barriers for US technology firms. Washington prefers direct, issue-by-issue talks rather than reviving a larger institutional forum. The Trade and Technology Council, created under the previous US administration, hasn't found traction with the current US team.

Tariffs stay, metals excluded from last summer's deal

Last summer the EU and US agreed a broader trade deal that set tariffs on most EU goods at 15%. But steel and aluminium were carved out. They still face a punitive 50% duty that has been in place since June 2025.

That duty is the main outstanding trade irritant between the two sides.

Šefčovič said progress on digital issues hasn't yet translated into movement on metals. "We still have a problem. That's very clear," he said. EU industry groups have urged a resolution. They say the rate is prohibitive and depresses transatlantic metal trade.

One idea floated by the commissioner was a "steel ring." He argued it would address global excess capacity rather than bilateral flows. He pointed to a widening gap between global production and European consumption.

Mastheads

The figures he cited show an overhang in capacity hitting markets worldwide.

Common ground and limits

Despite the standoff on metals, Šefčovič said the EU and US share several priorities. Both want safer online environments for children and fairer digital markets. They also agreed to cooperate on critical minerals, an area of strategic interest for both economies.

Still, the US seems reluctant to restore a formal forum like the Trade and Technology Council. Officials in Washington prefer targeted, bilateral exchanges on discrete items. Brussels is signalling that certain pieces of legislation are non-negotiable.

The negotiation dynamic matters for companies and investors. Firms active in both markets want regulatory clarity. They also want tariffs removed because duties add to costs and complicate supply chains. Those pressures are shaping how negotiators frame talks in coming months.

Industry pressure and political balance

European metalmakers have pressed for a solution. They argue global overcapacity is the problem. A high tariff on US imports has left the EU industry exposed to cheap foreign supply flooding global markets. Šefčovič used the capacity numbers to underline the point.

At the same time, Brussels is wary of appearing to bow to external pressure on rules that affect consumers. The tech laws were passed after long debates inside the EU. Lawmakers view them as safeguards for safety and competition, not barriers to trade.

That internal political balance limits what negotiators can offer. The commission can propose cooperative mechanisms. It can't simply repeal law without running into resistance at home. That reality sets the outer boundary for what any US-EU talks can achieve.

Private firms and commodity traders are already weighing the implications. Tariffs change price signals. They change where metals flow and how supply chains are organised. A 50% duty is large enough to shift sourcing decisions.

Similarly, uncertainty over digital rules affects tech companies. They face compliance costs in Europe that differ from those in the US. If Brussels and Washington find ways to align enforcement or exchange best practice, firms could save on compliance. If not, regulatory divergence will persist.

Investors watch both tracks. Some see the digital talks as a way to reduce friction for big tech. Others see the tariffs as the more immediate drag on industrial margins. Both are visible in earnings forecasts and capital expenditure plans across the manufacturing and technology sectors.

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Šefčovič said Brussels won't reopen its legislation but is ready for a digital dialogue: "We can't give anything that concerns our legislation, but we're ready to talk."

This article was created with AI assistance.