Conflict Regarding EU Legislation Hampers Customs Agreement with Trump
The EU-US trade agreement, announced in July 2025, is facing a delay due to disagreements over digital regulations. The crux of the issue is the European Union's Digital Services Act (DSA), which the United States views as trade barriers.
The DSA imposes stricter rules on digital platforms regarding content moderation, data handling, and platform liability. These regulations, according to the U.S., could potentially hinder trade and market access for American tech companies.
Negotiations on the trade deal have progressed on tariffs and goods but remain incomplete on digital trade provisions. The EU's insistence on retaining strong digital sovereignty and regulation contrasts with U.S. demands for open, less restrictive digital markets.
The EU Commission had originally expected Trump to reduce the tariffs on car exports from 27.5% to 15% by August 15. However, these reductions are now contingent on the signing of a joint statement, a development that has caused a delay.
Disagreements over formulations regarding "non-tariff trade barriers" are also contributing to the delay in finalizing the details of the trade deal. The US side counts the EU's digital regulations among these barriers.
The DSA prohibits manipulative practices that pressure users to make purchases, as well as advertising targeted at children. The US government, however, sees the EU's actions as an unjustified interference with freedom of speech.
In a recent statement, the US representative confirmed that the tariff reductions for EU car exports to the US will not take effect until a joint statement is signed. The US administration is reportedly considering concessions on the DSA as part of the deal.
Despite the challenges, both parties are committed to reaching a comprehensive agreement that fosters fair competition and promotes economic growth. The negotiations continue, with both sides working towards a resolution that respects their respective digital regulations and trade interests.
The EU's Community policy, specifically the Digital Services Act (DSA), has become a source of contention in the EU-US trade agreement, as it is viewed by the U.S. as potential trade barriers due to its stricter rules on digital platforms. The ongoing disagreements over digital regulations, including data handling, content moderation, and platform liability, are contributing to the delay in finalizing the trade deal, highlighting the contrasting views on digital policy-and-legislation between the two parties. The ongoing negotiations on the trade deal reflect the general news of politics, as both sides work towards a resolution that respects their respective digital regulations and trade interests, fostering fair competition and promoting economic growth.
