EU-US Trade Deal Stalls Over Digital Regulations and Tariff Disputes

Negotiations between the European Union and the United States have hit a snag as disagreements over digital trade rules delay the finalization of a joint statement. EU officials cite disputes around 'non-tariff barriers'—a term the US has connected to the bloc's stringent digital regulations—as a key sticking point. The statement was anticipated shortly after European Commission President Ursula von der Leyen and US President Donald TRUMP announced a tariff agreement on July 27.

At the heart of the impasse is the EU's Digital Services Act, which imposes stricter platform governance requirements on Big Tech. The US seeks flexibility for potential concessions, but Brussels maintains that diluting these rules is non-negotiable. A US official countered, emphasizing ongoing discussions to address digital trade barriers, a commitment allegedly acknowledged by the EU in earlier talks.

Tariff reductions remain in limbo. The European Commission expected Trump to sign an executive order by August 15, slashing tariffs on EU car exports from 27.5% to 15%. However, a US official clarified that such adjustments—including Section 232 tariffs on automobiles—will only proceed after joint statements are finalized. Drafts of the statement continue to circulate weeks past the initial deadline.