EU, US face structural contradiction in economy: Experts

It is unsurprising that Monday's trade talks between US and EU officials in Brussels are not expected to yield a finalized agreement anytime soon, as the two sides face structural contradictions on key issues, experts said.

The meeting took place nearly four months after US President Donald Trump and European Commission President Ursula von der Leyen reached a tariff deal at the end of July, under which the US would impose a 15 percent tariff on major EU exports to the US market, while the EU agreed to ramp up investment and increase purchases of US energy products.

The latest round of negotiations focused on resolving unsettled issues from that agreement and urging the US to implement its commitments. The EU's trade ministers also held a working lunch with US Secretary of Commerce Howard Lutnick and US Trade Representative Jamieson Greer, with their discussions centered on the future of transatlantic trade relations following the joint trade statement signed in August.

During the talks, Washington called on the EU to reconsider its digital regulations and adopt "a balanced approach" that would allow the United States to reduce tariffs on steel and aluminum imports. Brussels, meanwhile, sought to tighten restrictions on eel trade, a measure opposed by Japan.

The digital regulations under discussion refer mainly to the EU's Digital Markets Act, or DMA, and Digital Services Act, or DSA. The DMA imposes a series of regulatory rules on major internet platforms, including bans on abusing market dominance to suppress or acquire competitors and restrictions on the misuse of collected user data. The DSA, the EU's first major legislative overhaul of digital services in nearly two decades, aims to clarify the responsibilities of digital service providers and curb unfair competition by large online platforms.

Digital laws

The European side has repeatedly emphasized that these digital laws are not part of its trade negotiations with the United States.

"The tensions between Europe and the United States over steel and aluminum tariffs are not only serious — they are structural," said Jian Junbo, director of the Center for China-Europe Relations at Fudan University. "Steel imports would have a major impact on US manufacturing, so Washington needs tariffs to protect its domestic industry. This is a key motivation behind President (Donald) Trump's high-tariff strategy."

Jian noted that, as allies, Europeans expected Washington to make some concessions on tariffs in exchange for cooperation in other areas. However, the US administration did not take political or strategic considerations into account when imposing tariffs on Europe; instead, its decisions were driven solely by US national interests. "This has created a rift between the two sides that is difficult to bridge," he said.

Yan Xiaoxiao, a research fellow at the Institute of International Relations at the Shanghai Academy of Social Sciences, agreed. He said long-standing structural contradictions in trade have shaped the US-EU economic relationship. With Europe's security still reliant on the United States, Brussels has made concessions, trading economic interests for security guarantees. "This approach may temporarily manage disputes and tensions, but it cannot resolve the underlying problems," he said.

Both experts stressed that the digital sector is one of Europe's competitive advantages vis-a-vis the United States, making it a strategic bargaining chip in bilateral talks. Jian argued that under current circumstances, Europe is even less likely to compromise, which will further intensify conflicts. Yan added that digital regulation is a crucial pillar of the EU's pursuit of digital sovereignty and strategic autonomy, and "will never be easily put on the negotiating table as a bargaining chip".

zhangzhouxiang@chinadaily.com.cn