Donald Trump, the U.S. president, suggested that the European Union (EU)'s big tech regulations are a topic of discussion for tariff negotiations between both sides.
On the 28th (local time), according to a report from Ulotive, President Trump declared on Truth Social the previous day that he would immediately suspend trade negotiations with Canada, stating that Canada is "completely mimicking the EU. The EU has also taken the same measures and is currently in discussions with us on this matter."
The EU does not impose a digital tax on corporations. However, it is implementing the Digital Markets Act (DMA) and the Digital Services Act (DSA) to prevent antitrust actions by big tech and manage content. Corporations that violate these regulations face substantial penalty surcharges.
The Trump administration previously expressed complaints that the DMA and DSA effectively amount to taxation. Ulotive interpreted President Trump’s remarks as indicating that the EU is discussing the enforcement methods of the DMA and DSA regarding U.S. big tech in tariff negotiations.
A spokesperson for the EU Commission said, "We have made it very clear that we cannot compromise the sovereignty of our policy decision-making process, including our digital regulations."
However, as the deadline for tariff negotiations approaches on the 9th of next month, there are ongoing predictions that the EU will accept some of the U.S. demands in order to reach an agreement, even if it is somewhat unfavorable.
The Wall Street Journal (WSJ) reported last week, citing a leaked draft agreement, that after the EU and the U.S. first reach a trade agreement, they would begin separate bilateral talks related to the enforcement of the DMA, during which an "enforcement exemption" for U.S. corporations was mentioned.
At the EU summit held on the 26th, several member countries reportedly urged Ursula von der Leyen, the president of the EU Commission, to reach an agreement by the deadline, even if it was somewhat unbalanced. President Trump expressed dissatisfaction last month about the slow pace of negotiations with the EU, announcing that he would impose a 50% tariff on all European products, but rescinded that statement two days later under EU persuasion, suspending the imposition of tariffs until July 9.
The Commission, which holds full authority over the trade policies of the 27 member countries, stated that it will focus on reaching an agreement with the U.S. but will consider retaliatory measures if satisfactory results are not achieved.