Washington, D.C., June 25, 2025 – Today, Public Policy Solutions published a new report exposing Europe’s long history of undermining the United States’ digital services industry.
The report, titled “Europe’s Attack on American Industry: Bad Allies Undermining U.S. Digital Services Leadership,” reveals how the European Union (EU) is targeting American firms with discriminatory laws, protectionist fines, and regulatory schemes that boost their own lagging tech sector, all while leaving the door wide open to Huawei, ZTE, and Chinese state-controlled telecoms.
As President Trump’s July 9 deadline nears for a U.S.-EU trade deal, Treasury Secretary Scott Bessent has repeatedly emphasized that “egregious” digital service taxes and other non-tariff barriers should be addressed in a trade deal. The PPS report lays out three key elements that should be included to rebalance transatlantic relationship in this sector:
-
Stop discrimination against U.S. companies
-
Ensure fairness in digital regulation
-
Pause all new discriminatory and anti-innovation initiatives, such as network fees and regulatory overreach.
“Instead of creating an environment that allows their own digital service sector to grow and compete, the European Union is attacking American companies with unfair taxes, fees, and regulations, all while giving a pass to Chinese companies that pose serious national security risks,” said Joe Grogan, President of Public Policy Solutions and former Assistant to the President for Domestic Policy. “Our report comes as we’ve reached a critical crossroads in our relationship with our transatlantic allies. While we’ve long expected unfair and predatory trade practices from adversaries, we’ve been far too slow to recognize and curtail similar behavior from Europe. In order to restore balance to our partnership with the EU, any trade deal must address non-tariff barriers like digital service taxes and end their protectionist approach to these American innovators.”
Read the full report: Europe’s Attack on American Industry: Bad Allies Undermining U.S. Digital Services Leadership
###
Public Policy Solutions is an independent 501(c)(4) nonprofit organization dedicated to advancing common-sense public policy solutions that strengthen national security, promote economic opportunity, and empower everyday Americans