The European Union is seeking to shield its digital regulations from U.S. scrutiny as both sides finalize a delayed statement to formalize last month’s trade deal, the Financial Times reported on Sunday.
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EU officials said disputes over language on “non-tariff barriers” which Washington argues cover the bloc’s digital rules are among the factors delaying the joint statement, the paper added.
Reuters was unable to independently verify the report. The European Union, the White House, and the State Department did not immediately respond to requests for comment.
According to the Financial Times, the joint statement had originally been expected shortly after the July announcement by EU President Ursula von der Leyen and U.S. President Donald Trump. The July agreement set a 15% tariff on most EU goods—half the initially threatened rate—helping the allies avert a wider trade war. Together, the U.S. and EU account for nearly one-third of global trade.
The U.S. wanted to keep the door open for possible concessions on the EU’s Digital Services Act (DSA), which Washington says stifles free speech and imposes costs on U.S. tech companies, according to FT, which added that the commission has said that relaxing these rules is a red line.
The EU’s DSA is a landmark law meant to make the online environment safer and fairer by compelling tech giants to do more to tackle illegal content, including hate speech and child sexual abuse material.
The commission had anticipated that Trump would sign an executive order by August 15 to cut tariffs on EU car exports to the U.S. from 27.5% to 15%. However, a U.S. official signaled that this would be delayed until the joint statement was finalized, according to FT.