A Win-Win: Pushing the EU Digital Agenda Towards Innovation

The Trump Administration, led by the U.S. State Department, is ramping up its attacks on the EU’s digital rules. At the heart of this new push is the EU’s Digital Services Act, adopted in 2022, which regulates European activities of the world’s largest digital platforms, many of which are American.

President Trump also announced in February that the U.S. will consider retaliatory actions against countries imposing digital services taxes (DSTs) and as well other regulations, like the EU Digital Markets Act (DMA) and Digital Services Act (DSA), that will impact U.S. companies. While there are increasing numbers of countries that impose digital services taxes, the explicit reference to the DMA and DSA makes it clear that the European regulatory agenda is in the crosshairs.

This push against the EU’s digital regulations comes as transatlantic tensions are at a new high, with the U.S. imposition of tariffs and increased pressure on EU defense spending. These frictions in the relationship may provide the right opening to take a fresh look at the bilateral agenda on digital and AI governance.

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