A significant diplomatic clash has erupted between the European Union and the United States, with a senior EU official publicly accusing the Trump administration of employing tactics of "blackmail" during high-stakes trade negotiations.
Commerce Secretary's Demands in Brussels
U.S. Commerce Secretary Howard Lutnick, during his visit to Brussels for trade discussions earlier this week, presented a stark ultimatum to the 27-country bloc. He explicitly called for the EU to dismantle its stringent digital regulations in direct exchange for a reduction of U.S. tariffs on steel and aluminum.
"They would like to have steel and aluminum as part of this package," Lutnick stated in an interview with Bloomberg TV on Monday. He emphasized that it was "very, very important" for European officials to understand American digital companies and reconsider their regulatory framework to be more welcoming.
Lutnick's proposal was blunt: "Take your foot off the regulatory statement, build those data centers in America and in exchange for that, we'll come up with a cool steel and aluminum deal." He further urged the EU to settle its ongoing antitrust cases against tech behemoths Google and Amazon, promising that such a move could attract up to $1 trillion in investments from American companies.
EU's Forceful Rejection and Accusations
The U.S. proposal was met with immediate and forceful rejection from European leadership. Teresa Ribera, the bloc's antitrust chief, did not mince words when she labeled the American strategy.
"It is blackmail," Ribera told Politico, firmly stating that the "intention does not mean that we accept that kind of blackmail." This public condemnation underscores the deep tensions surrounding the future of digital governance and transatlantic trade.
The confrontation highlights a fundamental disagreement, even after the two economic powers reached a broader trade deal this past summer that set a 15% tariff on most goods. That agreement notably excluded steel, aluminum, and derivative products, which continue to be subject to a substantial 50% U.S. tariff.
The Battle Over Landmark Digital Legislation
Lutnick's criticism appears to be squarely aimed at two pillars of the EU's digital policy: the Digital Markets Act (DMA), designed to curb the dominance of large tech platforms, and the Digital Services Act (DSA), which governs online content and accountability.
The timing of this dispute is critical. Just last week, the European Commission unveiled new proposals that would delay the implementation of stricter artificial intelligence rules, particularly in "high-risk areas" like biometric identification, and soften certain privacy regulations.
This regulatory shift has already sparked significant backlash. A coalition of 127 civil society groups condemned the move, calling it "the biggest rollback of digital fundamental rights in EU history," as reported by Reuters. The pressure on EU institutions is palpable, with Dutch Member of the European Parliament Kim van Sparrentak expressing disappointment that the Commission appears to be "caving under the pressure of the Trump administration and Big Tech lobbies."
As these negotiations continue, the core conflict remains unresolved: whether Europe will maintain its regulatory sovereignty or yield to American economic pressure, setting a precedent for the future of global tech governance.
