What’s happening right now in the world of technology-cum-politics is reshaping the relationship between the U.S. and its allies, with the tech giants caught in the middle.
President Donald Trump is escalating tensions with foreign governments over digital regulations that are targeting major American technology companies like Apple, Meta, Google, and Amazon.
Unlike traditional trade disputes focused on physical goods, this clash centers on how governments regulate online platforms, data, and digital markets. And in response to how foreign regulators treat American tech giants, Trump is pushing back with threats, export restrictions, and sanctions against officials behind these new rules.
The recently enacted EU’s Digital Services Act (DSA) and the Digital Markets Act (DMA) aim to hold powerful tech companies accountable, especially on the European continent. To, most importantly, ensure and promote a free market zone, these digital regulatory frameworks force the tech giants to tackle harmful content, limit monopolistic behaviours, and provide users with more control over software and services.
For example, in April 2025, the EU fined Apple €500 million for restricting app developers from steering users to offers outside its App Store, and Meta €200 million for its “consent or pay” model, which forced users to accept tracking or pay for ad-free experiences. These fines exemplify the EU’s commitment to holding tech giants accountable.
However, to the Trump administration, these laws are unfairly targeting U.S. firms and stifling their global influence and reach.
President Trump recently took to his Truth social media account to highlight how harmful these regulations have been and how his administration was going to retaliate. “As the President of the United States, I will stand up to Countries that attack our incredible American Tech Companies. Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all designed to harm, or discriminate against, American Technology,” the president said.
Among potential actions under Trump’s retaliation move are tariffs on goods imported from countries implementing such digital laws and restrictions on U.S. technology exports, particularly advanced chips and software.
“This must end, and end NOW!” President Trump further emphasized. “With this TRUTH, 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.”
This growing dispute already marks a shift in trade policy, as it reveals a larger divergence in international regulations philosophy – the U.S. under Trump is emphasizing and promoting innovation and corporate interests with no barrier, while the EU is prioritizing consumer protection, data privacy, and market fairness.
