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EU Push to Protect Digital Rules Holds Up Trade Statement With US, FT Reports

Disputes over the EU's Digital Services Act delay finalizing the trade deal, which covers $84 billion in goods and aims to reduce tariffs to 15%, officials said.

  • On Sunday, efforts to finalize a joint trade statement between the European Union and the United States stalled as Brussels insisted on safeguarding its flagship digital regulations.
  • Amid rising tensions, wording disputes over the EU’s Digital Services Act have stalled negotiations, with Washington pressing for flexible wording and Brussels insisting on protection from being labeled as non-tariff barriers.
  • Negotiators are ironing out issues such as capping car tariffs and future sectoral duties at 15%, finalizing product lists, and a steel and aluminum framework, but the delay has affected progress.
  • Analysts say the impasse could prompt U.S. retaliatory tariffs on European goods or WTO disputes over digital barriers, which the US labeled 'non-tariff barriers'.
  • This impasse could undermine broader efforts to align on semiconductors and green technology amid rising geopolitical tensions with China and hinder innovation ecosystems in AI and e-commerce.
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Devdiscourse broke the news in India on Sunday, August 17, 2025.
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