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

• US tech firms were hit by "unreasonable" fines throughout 2025
• Tech regulation is changing in Europe and the US
• Trump's administration has threatened to retaliate

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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