Brussels’ brief respite from U.S. pressure on its digital rulebook has ended abruptly. Days after European Union officials celebrated keeping their flagship tech regulations out of a trade agreement with Washington, U.S. President Donald Trump reignited the dispute — this time via his Truth Social platform.
In a post, Trump accused Europe’s digital taxes and its sweeping Digital Services Act (DSA) and Digital Markets Act (DMA) of being designed to damage American tech giants. He pledged to “stand up” to countries imposing such measures and threatened retaliatory tariffs.
The EU’s response was swift and defiant. The European Commission reaffirmed its “sovereign right to regulate” and lawmakers from across the political spectrum urged the bloc not to yield. “We must stand firm on our principles and react if words actually become action,” said Italian MEP Brando Benifei, who chairs the European Parliament’s U.S. delegation.
A Long-Running Flashpoint
The confrontation is the latest chapter in a dispute that began during Trump’s presidency and has spanned successive U.S. administrations. Washington has repeatedly argued that the EU’s tech laws unfairly target American firms, while Brussels insists they are neutral, applying equally to all market players.
Trump’s latest remarks come as the European Commission’s tech and competition departments continue high-profile enforcement efforts, including ongoing probes under both the DSA and DMA. One investigation into Elon Musk’s social media platform X has drawn particular attention.
Last week, EU trade chief Maroš Šefčovič announced the exclusion of the tech laws from the current trade negotiations — a move hailed as a win in Brussels — but acknowledged that future talks could revisit the issue. Trump wasted no time in taking up that offer.
Threats Beyond Tariffs
Adding to the tension, Reuters reported that the U.S. is considering visa restrictions on EU officials over the DSA. European lawmakers reacted with alarm. “Europe will not rewrite its laws under threat,” said Renew Europe leader Valérie Hayer, rejecting “tariffs or blackmail” as leverage.
Danish MEP Christel Schaldemose, who leads Parliament’s work on the DSA, voiced fresh concerns that the trade deal itself had been designed to appease Trump and prevent a trade war — a strategy she fears may backfire. Green MEP Kim Van Sparrentak said the episode should serve as “a lesson for the Commission” that “bullies don’t speak diplomacy.”
Digital Taxes in the Crosshairs
Trump’s warning also targeted European nations with digital services taxes, including France, Italy, and Spain. Poland and Belgium have announced plans for similar levies. While EU governments insist the taxes are non-discriminatory, they could become bargaining chips in any renewed trade fight.
The U.S. president hinted at further escalation, suggesting export restrictions on “highly protected technology and chips” to countries with such measures. That could prove particularly painful for Europe, which last week committed to buying at least €40 billion worth of U.S. AI chips to build the infrastructure for advanced artificial intelligence — hardware it cannot currently produce itself.
Calls for Digital Independence
Analysts warn the flare-up underscores Europe’s vulnerability. “The risk of technological coercion and weaponisation is here to stay,” said Giorgos Verdi of the European Council on Foreign Relations. “The EU must start building its own independent stack of technologies.”
For now, the EU appears united in defending its digital rulebook — but with Trump setting the pace of the debate, Brussels may find itself once again negotiating under threat.
