Last January, Meta CEO Mark Zuckerberg said he was eager to have an ally in the White House to push back against foreign regulations that he argued forced American tech firms to censor more content. That was days before Donald Trump’s inauguration, and the president has been willing to take up that mantle, leading to an escalating standoff between the United States and the European Union that could increasingly weigh on their relationship.
The Trump administration has pressured the EU and other governments to scale back regulations on US tech firms, while also promoting fewer domestic guardrails. Last month, the administration intensified those efforts by threatening penalties against European tech companies and seeking to block prominent tech safety researchers and a regulator from entering the United States.
The tensions stem from a fundamental disagreement over tech regulation. Europe, a global leader in tech-related legislation, believes rules like the General Data Protection Regulation and the Digital Services Act promote online safety, free speech, and fair competition. The United States, under Republican control, has generally taken a hands-off approach, framing content moderation as censorship and allowing American companies to push back. This conflict could put Silicon Valley in the crosshairs of broader US-EU trade negotiations, especially as the Trump administration sees unfettered AI development as vital to the economy and national security.
The US-EU dispute over regulating tech dates back to Trump’s first term. American officials sharply criticized the EU’s GDPR when it went into effect in 2018, while EU antitrust actions against American firms prompted discrimination claims, which European officials denied. In 2023 and 2024, the EU introduced the Digital Services Act and Digital Markets Act, imposing rules on social media moderation, targeted advertising, interoperability between platforms, and fines for noncompliance. Experts note the laws were partly designed to simplify compliance across EU member states, and Trump has encouraged a similar approach to AI regulation in the United States.
Tech CEOs, including Zuckerberg and Apple’s Tim Cook, have sought to influence Trump, raising concerns about European regulations. In February, Vice President JD Vance criticized European “censorship” at the Munich Security Conference, while Trump signed a memo threatening tariffs on governments that tax US tech firms or promote policies that “incentivize … censorship.” European officials have pushed back, saying their rules apply equally to all companies operating in the EU.
The EU has fined Apple and Meta a combined €700 million under the DMA, prompting criticism from US companies. Trump threatened a tariff investigation after a $3.45 billion fine against Google, calling it “very unfair.” The EU also fined X (formerly Twitter) around $140 million for misleading design features, which Elon Musk and several US lawmakers publicly criticized. US Trade Representative Jamieson Greer warned European firms of potential fees or restrictions if EU regulations continued to limit American companies.
Days later, US Secretary of State Marco Rubio announced visa sanctions against former European commissioner Thierry Breton and others for alleged censorship, drawing condemnation from EU officials who said the rules ensure a fair and safe digital environment. Critics note the Trump administration’s claims of European censorship coincide with domestic actions that could chill free speech, including targeting journalists and non-citizen academics.
The dispute could play a central role in broader US-EU trade talks. While the July trade deal addressed some “non-tariff barriers,” issues surrounding the enforcement of the DSA and DMA remain unresolved. The EU announced new investigations into potential anticompetitive behavior by Meta and Google, while lawmakers proposed a digital omnibus to simplify some tech rules. US officials, however, continue to push for further rollbacks in exchange for lower tariffs. Analysts say the tensions highlight Europe’s need to develop its own technologies and reduce reliance on Silicon Valley, particularly in AI and cloud computing, to strengthen resilience and support innovation.