Trade policy: EU promotes AI cooperation with the US

The European Commission intends to significantly expand cooperation with the United States in the field of artificial intelligence. The aim is to defuse tensions and avert a looming trade conflict with its most important trading partner.

The EU and the US have “the same interest” in the field of artificial intelligence (AI), including the desire to build “AI factories” that are essential for companies such as Apple, Google and Meta, said EU Trade Commissioner Maroš Šefčovič.

Closer cooperation in the technology sector would be beneficial for both sides, it added. The EU is strong in the production of chip machines, while the US is a leading developer of semiconductors.

The Dutch company ASML, for example, is a leading manufacturer of lithography machines for chip manufacturing. The US chip manufacturer Nvidia is one of the most valuable companies in the world – measured by market capitalization.

“We have the printing machines to print the chips, they have the technology, and I believe that we are allies and should have the same interest in this regard,” said the EU Commissioner during a visit to Singapore.

Proposal of the EU Commission

The commitment to closer AI cooperation is part of a Commission proposal to avoid comprehensive tariffs on European goods. According to Šefčovič, the proposal will be presented on Thursday.

“We will announce the next preparatory steps, both in the area of ​​possible compensatory measures and in the areas that are important for further discussions,” said Šefčovič.

He indicated that the Commission's proposal would also reaffirm previous EU commitments, such as increased purchases of liquefied natural gas or soybeans from the US.

In a veiled reference to China – which is also strengthening its position in AI – Šefčovič said Brussels and Washington should develop a “common approach” to critical minerals and “coordinate better” in tackling Chinese “overcapacity” in the steel sector.

China is the world's largest steel exporter and dominates the global market for the mining and refining of many minerals necessary for batteries, electric vehicles and semiconductors.

Between cooperation and security

The EU Commission's "compensatory measures" are likely to include a threat to impose €100 billion in retaliatory tariffs on US goods if negotiations with Washington fail, according to sources familiar with the matter.

The threatened tariffs come on top of the €21 billion in retaliatory tariffs already imposed by the EU last month after Trump announced a 90-day suspension of "reciprocal tariffs" on American trading partners—including a 20 percent levy on the EU.

EU companies are currently facing a US import tariff of 25 percent on cars , steel and aluminum – all other goods are subject to an additional flat-rate levy of ten percent.