The European Union is pushing back against U.S. efforts to wrap its digital regulations into a new trade deal, slowing progress on an agreement announced last month, the Financial Times reported.
EU officials told the paper that language on non-tariff barriers remains the sticking point. Washington views the bloc’s digital laws as such barriers, but Brussels disagrees. That dispute has held up a joint statement that was supposed to follow quickly after July’s accord between European Commission President Ursula von der Leyen and U.S. President Donald Trump.
That deal had already eased tensions by cutting tariffs to 15% on most EU goods, half the rate the U.S. initially threatened, and calming fears of a deeper transatlantic rift. Together, the U.S. and EU account for nearly a third of global trade.
The U.S. side wants leeway to negotiate over the EU’s Digital Services Act, which forces platforms to remove harmful or illegal content. American officials argue it’s costly and limits free speech, while Brussels has drawn a red line against any weakening of the rules.The FT added that a Trump executive order cutting tariffs on EU car exports from 27.5% to 15% is now on hold until the joint communique is resolved.
This article first appeared on GuruFocus.