EU Trade Commissioner Warns Against Weakening Tech Rules Under US Pressure

“Our regulations are democratically adopted by us through a very thorough legislative process,” Sefcovic said. “We are going to protect our tech sovereignty.”

His remarks come as the EU continues to struggle to secure exemptions from US tariffs on steel and aluminum, despite a broader EU-US trade agreement earlier this year that removed tariffs on all American industrial goods entering Europe. According to Bloomberg, the issue has become a focal point in transatlantic relations, particularly after US Commerce Secretary Howard Lutnick warned last month that any relief on metal tariffs would depend on the EU softening its approach to regulating large technology firms.

Despite the stalemate, Sefcovic struck a more optimistic tone on the prospects for easing tariffs in other areas, notably machinery. He suggested there may be room for progress if both sides recognize their mutual interests, Bloomberg reported. “If America wants to reindustrialize, they need the machines — and we are ready to send them, but the machines are all exported at very low volumes, or not at all,” he said, pointing to concerns among exporters about heavy fines and burdensome customs requirements.

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The impact of US tariffs has been especially acute for German companies, which have been hit hard by the 50% duties on steel and aluminum used in machinery production. This pressure comes at a time when Germany’s industrial sector is already grappling with elevated energy costs, according to Bloomberg.

Sefcovic also addressed Europe’s complex trade relationship with China, offering cautious optimism while acknowledging persistent challenges. “We have initial information about China accepting…what we suggested in the course of summer on general licenses,” he said, adding that discussions with China’s Foreign Ministry are continuing, per Bloomberg.

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At the same time, he highlighted the scale of Europe’s trade imbalance with Beijing, describing the roughly €300 billion deficit as excessive. “I would say to European industry, you have to be prepared to pay a premium, you have to stockpile, diversify,” Sefcovic said. “Because [we] learned the hard way how dependencies are costly.”

When asked whether the EU might deploy its anti-coercion instrument — the bloc’s most powerful trade defense mechanism — against China, Sefcovic said such a move was not imminent. “Before we go to the strongest instrument in our arsenal, we should see what the dependencies are, if European companies in China are treated fairly,” he said, also citing concerns over public procurement access and industrial overcapacity.

“We will fight tooth and nail for European jobs and companies — and to have a deficit of 300 billion on a permanent basis is unsustainable,” he added, according to Bloomberg.

Broader market sentiment toward Europe remains relatively constructive, according to Bloomberg Television. John Bilton, head of global multi-asset strategy at JPMorgan Asset Management, said investors remain confident in the region’s underlying strength. “We’re positive on Europe from its ability to recover naturally, not just from fiscal stimulus,” he told Bloomberg Television, adding that the euro is still undervalued “probably by the tune of 7 to 10%.”