When people think of trade, products being loaded onto ships typically come to mind. However, what many don’t realize is that a significant portion of America’s trading power is really loaded onto computer chips. Digital services have become a cornerstone of the U.S. economy and a testament to our nation’s ingenuity and leadership in innovation. From cloud computing and artificial intelligence to social media and e-commerce, American technology companies provide essential services that power businesses, connect communities and entertain millions around the globe. But discriminatory foreign regulations are seeking to undermine this leadership.
This vibrant sector is not just a domestic powerhouse; it is one of our most significant exports. As U.S. services exports grow, our digital leadership provides immense economic value by creating jobs and driving growth here at home. However, this global success has also made these American companies a target for foreign competitors using regulations to erode their competitiveness and harm U.S. economic interests. It’s time for the Trump administration to put a stop to it.
For years, Brussels has been waging an economic war on America’s technology sector. Masquerading as a campaign for a “safer” internet, the European Union’s Digital Markets Act (DMA) and Digital Services Act (DSA) are nothing short of calculated protectionism. This isn’t about fairness. It’s a strategic effort to kneecap American rivals, prop up Europe’s legacy industries and siphon billions of dollars from U.S. companies.
The numbers are staggering. The EU has already extracted tens of billions from American firms through digital taxes and fines. The future looks even worse, with new estimates projecting annual costs of up to $97.6 billion from lost revenue, compliance burdens and massive penalties. This is a direct wealth transfer, empowering the European Commission to fine U.S. companies up to 20% of their global turnover and redirect the funds to EU governments. In effect, American innovation is being used to bankroll European state budgets.
The collateral damage extends far beyond finances. The EU’s regulatory crusade is choking the very innovation it claims to champion in its own backyard. As former Italian Prime Minister Mario Draghi warned in a major report, this approach “hampers innovation” and has trapped the continent in a cycle of economic stagnation. We’re already seeing the consequences as American industry leaders like Apple, Google and Meta are forced to delay or cancel the launch of new services and AI tools in Europe.
Worse still, the EU is exporting its heavy-handed approach to content moderation. Through the “Brussels effect,” the DSA pressures platforms worldwide to censor legal speech to avoid punishment. This effectively outsources the rules of online discourse to European bureaucrats, creating a direct conflict with America’s bedrock principles of free expression.
Brussels is only doubling down. Despite clear evidence of economic self-harm, the Commission continues to draft harmful new regulations while almost exclusively targeting American companies for DMA enforcement.
The time for passive observation is over. The U.S. can no longer afford to watch as a foreign power systematically dismantles one of our most critical industries. As President Trump recently vowed, “My Administration will NOT allow these discriminatory actions to stand…I will be forced to start a Section 301 proceeding to nullify the unfair penalties being charged to these Taxpaying American Companies.”
The United States Trade Representative (USTR) must act now and initiate a Section 301 investigation into the EU’s discriminatory trade barriers. This is our right under the Trade Act of 1974. The investigation must be comprehensive, targeting the full spectrum of the EU’s protectionist measures.
Launching a Section 301 investigation will send an unmistakable signal worldwide: the United States will defend its economic sovereignty. It’s time to draw a line in the sand for American innovation, free enterprise and free speech.
Image via Unsplash.