The agreement concluded between the European Union and the United States on 21 July (see EUROPE 13689/1) does not cover digital questions, according to the European Commission. Since then, its implementation has continued, notwithstanding the threats made on 25 August by US President Donald Trump to impose additional tariffs on countries that regulate or tax digital technologies. “We will proceed with the implementation of the joint statement which does not cover this question”, said the European Commission’s chief spokesperson, Paula Pinho, on Tuesday 26 August.
This week, the Commission hopes to adopt a proposal for a regulation to eliminate tariffs on American industrial products and to reduce customs duties on certain American agri-food products, as agreed in the joint declaration (see EUROPE 13694/15).
By publishing the legislative proposal before the end of August, the Commission is ensuring that the reduction in US tariffs on cars will take retroactive effect across the Atlantic from 1 August. The joint declaration stipulates that Washington will reduce its tariffs on European cars “from the first day of the same month in which the European Union’s legislative proposal is introduced”.
Although no meeting of the College of Commissioners is scheduled for this week, it could adopt the proposal by written procedure before the end of the week, and therefore of August.
The Commission continues to rely on the 15% ceiling rate. On the evening of Monday 25 August, Donald Trump warned “all Countries with Digital Taxes, Legislation, Rules, or Regulations” that if they did not remove their measures, they would face “substantial additional Tariffs on that Country’s Exports to the U.S.A.” as well as “Export restrictions on our Highly Protected Technology and Chips”, he said on Truth Social.
In his view, all technology regulations are “designed to harm or discriminate against American technology”. They are also “scandalously granting a total exemption to China’s largest technology companies”, he wrote.
According to information reported by Reuters on the evening of Monday 25 August, the White House could consider sanctions against European officials or civil servants responsible for implementing the DSA, in the form of visa restrictions.
Despite the prevailing uncertainty following the US President’s statement, Commission spokeswoman Paula Pinho is adamant that the agreement on tariffs reached in July does indeed bring “stability” and “predictability”. She believes that the 15% ceiling applies to all EU products, thereby protecting European producers.
The European Commission continues to defend its arsenal of digital legislation. Donald Trump’s announcement prompted a number of European leaders and elected representatives to raise their voices. When questioned, the Commission continued to stand firm: the claims that the DSA is a censorship tool are untrue, insisted Thomas Regnier, spokesperson for the institution. “As for President Trump’s statements that we would target American companies, we can firmly refute that claim”, he added.
In a sharply worded statement, the Renew Europe group in the European Parliament said that U.S. threats to the EU’s digital sovereignty were unacceptable. “Threats of punitive tariffs or export blackmail will not change European legislation. We are open to dialogue with the United States - but we will never negotiate European legislation under threat”, said group Chair, Valérie Hayer (French).
The Commissioner and Vice-President of the Commission responsible for technological sovereignty, Henna Virkkunen, was conspicuous by her lack of direct reaction to Trump’s threats. (Original version in French by Léa Marchal and Isalia Stieffatre)