France and Germany Reject Trump's Threats on EU Tech Legislation

Aug 31, 2025, 8:46 PM
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France and Germany have denounced US President Donald Trump’s threats to impose tariffs on countries with digital taxes, asserting the EU’s sovereign right to regulate technology. The leaders warned that any attempt by Washington to coerce them into changing their digital regulations would face retaliation from the bloc.
EU Sovereignty Stands Firm, Macron and Merz Assert.
French President Emmanuel Macron and German Chancellor Friedrich Merz emphasized that tax and regulation issues are the responsibility of national parliaments and the European Parliament, rejecting external interference. Macron stated, “We won’t let anyone else decide for us,” while Merz called EU digital market regulations an expression of bloc sovereignty. Both leaders warned that US pressure would be met with countermeasures under the EU’s anti-coercion instrument, which allows punitive actions against countries attempting to force policy changes.
Digital Acts Face Trump Criticism.
The Trump administration has consistently criticized the EU’s Digital Markets Act (DMA) and Digital Services Act (DSA), which aim to curb tech giants’ power and require platforms to address harmful content. The Commission reiterated that these laws apply to all firms operating in the bloc, refuting claims they target US companies. Macron and Merz stressed that EU regulations are designed to protect its digital ecosystem, not hinder American businesses.
Tariffs as a Warning Shot.
Trump threatened additional tariffs on nations with digital taxes, legislation, or regulations, framing them as discriminatory against US tech firms. This escalation follows years of tensions over the EU’s approach to Silicon Valley companies, which have lobbied against strict data governance rules. The leaders warned that such measures would disrupt global trade and undermine Europe’s competitive edge in emerging technologies.
Global Tech Regulation Divide Widens.
The dispute highlights a broader clash between US free-market principles and EU regulatory ambitions. While Trump’s policies prioritize domestic industry, the EU seeks to establish rules for digital monopolies and content moderation. French officials noted that retaliatory tariffs could harm European firms reliant on US tech infrastructure, such as cloud services and semiconductor manufacturing.
Industry Calls for Legal Clarity.
Experts warn that the lack of clear guidelines on AI-generated music and other emerging technologies risks destabilizing global markets. While some creators embrace generative tools, others fear devaluation of human creativity and intellectual property theft. Meanwhile, EU leaders remain focused on balancing innovation with protections against foreign coercion in digital policy.
Transatlantic Tensions Intensify.
The spat underscores deeper rifts between Washington and Brussels over industrial policy. While the Biden-era Inflation Reduction Act (IRA) spurred green investments, Trump’s administration has reversed many climate initiatives, prioritizing fossil fuels instead. European firms now face a precarious situation: navigating US trade threats while advancing their own digital sovereignty agenda.

EU Warns of Reciprocal Measures

The European Commission reiterated that any attempt to pressure the bloc into altering its tech rules would trigger “reciprocal measures,” though specifics remain unclear. Analysts suggest the EU may leverage its influence over global supply chains to counter US tariffs, particularly in sectors like semiconductors and green energy. As tensions escalate, both sides face a high-stakes gamble: either find common ground or risk economic disruption across continents.

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