The United States has warned European companies of possible fees and restrictions over EU tech rules. The message was posted by US trade officials on X last week. They accused the European Union of discriminating against American service providers.
Trade tensions escalate
Washington says it may retaliate if EU regulations continue to limit US competitiveness. The warning comes despite a US services trade surplus with the EU worth more than €148 billion. This includes technology, telecommunications, and intellectual property services.
Why Europe is unmoved
The American argument has gained little support in Brussels or EU capitals.
Strong rhetoric is instead seen as confrontational and politically counterproductive. European moderates often feel pushed away rather than persuaded.
Rhetoric fuels backlash
Linking tech regulation with geopolitical threats risks radicalising European debate. Comments from US tech leaders have sometimes been echoed by Russian officials. This has damaged credibility and hardened attitudes.
Risk of retaliation
US threats may strengthen calls in Europe for tougher action against American firms. These include fines, taxes, and forced divestments. The European Commission’s 2025–2029 agenda already includes new regulatory initiatives.
Messaging gap widens
American messages often target domestic audiences and miss European legal realities. A €120 million fine against X was framed as a free speech issue in the US. EU regulators say it concerned advertising transparency and data access instead.
Companies in the crosshairs
Named firms include SAP, Siemens, Spotify, and Mistral AI. Some have criticised EU overregulation themselves. Why others were excluded remains unclear.
Shared regulatory burden
Overregulation also harms European competitiveness, not just American companies. EU leaders now acknowledge this problem. Whether cooperation follows remains an open question.
