The EU and US are actively negotiating to formalize a trade deal agreed upon last month. Central to these discussions are disagreements over digital rules and tariffs.
Disagreements over Digital Rules
EU officials noted that disagreements over wording, especially concerning 'non-tariff barriers', are a primary reason for the delays. These barriers were previously linked to the bloc's ambitious digital regulations. The US aims to allow room for possible concessions on the Digital Services Act, which requires Big Tech companies to police their platforms more rigorously. However, the Commission has made clear that relaxing these rules is a 'red line'.
Uncertainty on Tariff Reductions
The Commission had anticipated that Trump would sign an executive order reducing tariffs on EU car exports from 27.5% to 15% by August 15. However, a US official suggested this would not happen until the joint statement is finalized. 'Actions that adjust any tariff rate will follow the finalization of joint statements,' the official stated.
Timing and Market Access
Disagreements over timing continue to stall progress. The Trump administration has sought clarity on when American food products would gain improved market access. Brussels argues that precise timelines are impossible due to the lack of finalized legal changes. 'We made political commitments which we intend to honor, provided they do the same first,' one EU official remarked.
Negotiations are ongoing and no final text has been produced. This leaves participants and global markets in the dark regarding potential changes to tariffs and digital regulations, creating significant uncertainty.
