Efforts to finalize a joint trade statement between the European Union and the United States have hit a roadblock as Brussels pushes to safeguard its flagship digital regulations, according to Bloomberg.
Talks are currently snagged on language concerning the EU’s Digital Services Act, a law designed to rein in the power of major technology companies. Washington has been pressing for more flexible wording that could leave room for concessions on the measure, but the European Commission has made clear it will not accept any compromise on the legislation, per Bloomberg.
The delay has also affected progress on tariffs. US President Donald Trump is holding off on signing an executive order to cut duties on European car imports until the joint statement is in place, Bloomberg reported, citing a US official. The two sides had reached a deal in July that set most EU exports to face a 15% tariff, though the levies on vehicles have yet to be reduced.
Related: Big Tech Faces Dutch Scrutiny Under EU Digital Services Act Before Vote
Despite the standoff, EU officials remain optimistic that an agreement can be wrapped up by the end of next week. Such a resolution would allow both the trade declaration and accompanying US executive measures to move forward, according to Bloomberg.
Negotiators are still ironing out a series of issues, including setting a cap on car tariffs and future sectoral duties at 15%, finalizing product lists that will qualify for lower tariffs, and establishing a framework for discussions on steel and aluminum. People familiar with the talks told Bloomberg that progress is being made, but the digital rules dispute remains the central obstacle.
Source: Bloomberg