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EU Bars Digital Rulebooks From Trade Talks as Trump Threatens 50% Tariffs

Brussels advances enforcement probes under its Digital Services Act, rejecting US demands to pause its AI Act.

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Overview

  • Tech commissioner Henna Virkkunen declared the Digital Services Act, Digital Markets Act and AI Act off-limits for renegotiation, citing their basis in European values.
  • The European Commission is pushing ahead with multiple probes under the Digital Services Act, including a high-profile investigation into Elon Musk’s Platform X.
  • Washington has urged a pause on the AI Act, a request that is gaining traction among some EU officials and technology executives.
  • President Trump has set a July 9 deadline for a trade breakthrough, warning of 50% reciprocal tariffs on all EU exports if no agreement is reached.
  • US officials and industry groups argue the EU’s digital rules disadvantage American firms while giving Chinese competitors an advantage.