Overview

• Negotiators have yet to sign the verbal July framework because Brussels refuses to allow US demands for carve-outs in the Digital Services Act.
• The US administration has delayed reducing import duties on EU vehicles from 27.5% to 15% until a formal agreement on digital rules is ratified.
• The EU’s DSA mandates that major platforms like Meta, Alphabet, and TikTok remove illegal content, ban manipulative practices and child-targeted ads under threat of fines up to 6% of global turnover.
• US officials argue that treating the DSA as a non-tariff barrier could undercut free-speech protections and give Brussels undue power over cross-border digital services.
• There is no clear timeline for resolving the dispute, leaving the trade pact unsigned and the promised tariff cuts in limbo.