EU gears up for even more tough tech enforcement in 2026 as Trump warns of retaliation

Date:
Mon, 05 Jan 2026 16:45:00 +0000

Description:
US Trade Rep says America might have to use "every tool at its disposal" to counter Europe's "unreasonable measures."

FULL STORY

2025 proved to be a heavy year for transatlantic relationships, with Trump taking office in the US and a renewed focus on tech regulation across the European Union increasing tensions between two global superpowers.

Shifts in how crypto, AI, and data protection regulations have been handled
in the EU saw multiple Big Tech fines handed out, with Trump arguing that Europe has targeted US firms in its antitrust investigations.

However, the US hasn't been without its own upheaval, with rising conflict
over whether AI regulation should be handled at a state or federal level emerging in the final weeks of 2025.

US-EU tech battle could be set to continue

Widely considered a global leader in digital regulation, 2025 was the year
that the EU indicated an intention to reverse and/or simplify some data protection rules in order to encourage AI development.

In-keeping with its intention to become an AI superpower, Europe spent the
year hitting US firms like Google, Apple, and Microsoft with hefty fines,
which haven't gone unnoticed by Trump.

As such, in December, the US threatened new fees and market barriers over
what it described as "discriminatory and harassing lawsuits, taxes, fines,
and directives against US service providers."

"If the EU and EU Member States insist on continuing to restrict, limit, and deter the competitiveness of US service providers through discriminatory
means, the United States will have no choice but to begin using every tool at its disposal to counter these unreasonable measures," the Office of the US Trade Representative shared in an X post.

The Trade Representative went as far as naming specific European companies
that have "enjoyed [the] expansive market access" that is the US, including Accenture, Capgemini, DHL, Mistral, SAP, Siemens, and Spotify.

The US has imposed travel restrictions on certain EU individuals, including former Commissioner Thierry Breton, which has been seen as a form of retaliation.

"Our digital rules ensure a safe, fair, and level playing field for all companies, applied fairly and without discrimination," the Commission wrote .

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Link to news story: https://www.techradar.com/pro/eu-gears-up-for-even-more-tough-tech-enforcement -in-2026-as-trump-warns-of-retaliation

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