EU Digital Rules Stall Trade Deal with US

The European Union (EU) and the United States are struggling to finalize a joint trade statement because of disagreements over Europe’s strict digital rules, according to the Financial Times. The EU is concerned that the U.S. may use the deal to challenge its landmark Digital Services Act (DSA), which forces tech giants to better police online content such as hate speech and child exploitation.

Washington, on the other hand, argues that the DSA increases costs for American companies and limits free speech. EU officials have insisted that these rules are non-negotiable, making them a major sticking point in trade talks.

The statement was supposed to follow the July trade agreement announced by EU President Ursula von der Leyen and U.S. President Donald Trump. That deal reduced tariffs on EU imports from 30% to 15%, avoiding what could have been a broader trade war. However, the U.S. also wanted flexibility to push for concessions on digital regulations in the future.

Meanwhile, a planned U.S. executive order to cut tariffs on European cars has been delayed until the trade statement is complete. Both sides know global trade stability depends on resolving this dispute quickly.