Donald Trump has threatened to impose fresh sanctions to protect US tech giants from what he called “discriminatory” taxes and rules.
The EU’s Digital Services Act and Digital Markets Act put the onus on tech giants and social networks to better protect consumers.
The European Commission says the two chunky pieces of legislation which have only recently come into force, “aim to create a safer digital space where the fundamental rights of users are protected and to establish a level playing field for businesses.”
The DSA and DMA were not which requires in the EU-US tariff deal which was put into writing last week.
EU sources said they had been clear to the US that the European Union’s right to regulate would not be curtailed.
But that a document which is not legally binding.
In a message on social media over night, Trump wrote:
“I put all Countries with Digital Taxes, Legislation, Rules, or Regulations, on notice that unless these discriminatory actions are removed, I, as President of the United States, will impose substantial additional Tariffs on that Country’s Exports to the U.S.A., and institute Export restrictions on our Highly Protected Technology and Chips.”
That’s a particular worry for Ireland where many of the American firms have the European headquarters.
It also comes as Reuters claims that the Trump administration is considering placing sanctions on the European Union, or even individual EU officials who regulate tech in a way that the US does not like.
Senior State Department officials have yet to make a final decision on whether to go ahead with the punitive measures, Reuters reported.
If they did, EU nationals could face visa restrictions. It would be an unprecedented move.