Analysis
November 25, 2025
US offers EU steel tariff deal in exchange for looser tech regulations
Written by Kristen DiLandro
US Commerce Secretary Howard Lutnick said the US will amend its steel and aluminum tariffs for the European Union (EU) if the bloc changes its digital regulations.
During a meeting in Brussels on Monday, the EU and US discussed the current state of their trade arrangements. Each cited the other’s punitive policies as a cause of economic turmoil.
Bloomberg News reported the German Economy Minister Katherina Reiche expressed frustration with US levies on steel and aluminum products. The US contends the EU’s Digital Markets Act and the Digital Services Act unfairly targets its big tech firms.
“Regarding steel and aluminum, we must achieve additional relief,” stated Reiche. The minister told reporters, “Many machines that have been produced can’t be delivered to the US and our companies are suffering from considerable declines in sales.”
In a report by the Financial Times, Lutnick said the US will only change its steel and aluminum tariffs if the EU changes its tech policies.
“If they can come up with a balanced approach [to technology regulation] then we will, together with them, handle the steel and aluminum issues and bring that on together. So that is on the table,” said Lutnick.
The European Commission appeared to stand by its policies when it responded to Lutnick.
“We are always open to discuss with like-minded all topics and potential concerns, but this does not change the fact that Europe has its sovereign right to legislate,” said a statement from the commission published by the Financial Times.
The EU argues its ongoing investigation with Chinese tech companies is evidence that it is not targeting US-based firms.
The bloc has cases against Microsoft, Google, and Amazon. Google faces an antitrust fine of ~$3.4 billion.
The US International Trade Administration’s Steel Import Monitor (SIMA) data shows imported steel from Germany in 2024 totaled 1.1 million metric tons.
