Overview
- EU ministers pressed Washington to cut the 50% U.S. tariffs on steel and aluminium, with EU Trade Commissioner Maroš Šefčovič calling the meeting a stocktake and not one expected to yield an agreement.
- U.S. Trade Secretary Howard Lutnick said any movement on steel and aluminium depends on the EU adjusting its digital rules under the DSA and DMA and resolving existing cases against major U.S. tech firms.
- Šefčovič said EU digital laws apply equally to all companies, and the European Commission signaled that its digital legislation is a sovereign matter separate from steel discussions.
- An Ifo-Institut analysis estimates German exports to the U.S. will fall by about 15% on average under the current tariff regime, including a 22% drop in autos and a 30% decline in machinery, trimming GDP by roughly 0.13%.
- The Ifo report argues new EU trade agreements with India, Indonesia, Australia, Malaysia, Thailand, the UAE and Mercosur could more than offset the tariff damage, depending on the depth of the deals.