The European Union's insistence on protecting its digital regulations, particularly those related to the Digital Services Act (DSA), has delayed the formalization of a trade deal with the United States. According to multiple reports, including the Financial Times, the EU views relaxing these digital rules as a red line, resulting in the EU returning the draft joint trade statement to the US. This standoff centers on non-tariff barriers and the EU's efforts to safeguard its digital economy regulations, which are considered crucial for future trade negotiations between the two parties.