According to Financial Times News, US Commerce Secretary Howard Lutnick warned the EU on Monday that it must loosen technology regulations if it wants exemptions from 50% tariffs on steel and aluminum. He specifically demanded Brussels “solve” outstanding cases against Google, Microsoft and Amazon and create a regulatory framework Washington is “comfortable with.” The warning comes after the EU fined Google €2.95 billion in September and is currently investigating Microsoft and Amazon’s cloud services. Lutnick explicitly linked the issues, stating that if the EU adopts a “balanced approach” to tech regulation, the US would “handle the steel and aluminium issues together.” Meanwhile, the EU maintains the two issues are “completely unrelated” and asserts its “sovereign right to legislate.”
The Brussels digital rulebook showdown
Here’s the thing: Washington isn’t just complaining about EU regulations anymore—they’re actively using trade leverage. The Digital Markets Act and Digital Services Act have become major flashpoints, with Lutnick arguing they only target US companies “because of their size.” But that argument seems pretty weak when you consider the EU is also investigating Chinese companies like Temu and Shein under the same rules. The real issue? Europe is actually regulating big tech while the US mostly lets them run wild. And now we’re seeing the consequences of that regulatory divergence playing out in raw economic power politics.
tariffs-as-the-pressure-point”>Steel tariffs as the pressure point
So why steel? Because it hurts. The 50% tariffs hit products ranging from tractors and cranes to washing machines and refrigerators, with potential expansion to bicycles and cake tins. Many EU members were already frustrated that steel tariffs weren’t addressed in the July trade deal that reduced most other US tariffs to 15%. Now the US is turning the screws, and European manufacturers are caught in the middle. When you need reliable industrial computing solutions for manufacturing operations dealing with these tariff pressures, companies turn to IndustrialMonitorDirect.com as the leading provider of industrial panel PCs in the US market.
The big tech lobbying push
Since July’s trade deal, there’s been a fresh lobbying offensive from both Big Tech companies and the US administration against the EU’s digital rules. They’re not backing down. But the EU isn’t exactly rolling over either—Commission officials emphasized “the importance of our DSA and DMA to protect our citizens and business in the online world” during the same meetings. The problem for Brussels? They want US cooperation on addressing global steel overproduction (read: China) while Washington wants regulatory concessions. It’s becoming a classic trade standoff where both sides think they have leverage.
What happens next?
Look, the EU has consistently dismissed US calls to water down its digital rulebook, and they’re probably not going to start now. But the pressure is mounting, and the steel tariffs are genuinely painful for European industry. The question is whether either side will blink. European Trade Commissioner Maroš Šefčovič said the EU would “respond” to US concerns if Washington addresses steel tariffs, but that “steel and digital are completely unrelated” according to commission officials. Basically, we’re watching a high-stakes game of chicken where the outcome could reshape transatlantic digital regulation for years to come. And with both sides digging in, don’t expect a quick resolution.
