The Trump administration has warned European companies they could face economic penalties, escalating tensions over tech regulation and trade as relations between Washington, London and Brussels grow more strained.
Meanwhile, in London
Downing Street insists that a long-delayed $40bn Tech Prosperity Deal between the United States and United Kingdom is not dead.
Prime Minister Keir Starmer's office said Britain remains in "active conversations" with US counterparts about reviving the agreement, which aims to boost cooperation between the two countries' technology sectors. Talks were paused after Washington accused the UK of failing to lower trade barriers, including its digital services tax on US tech firms.
"Discriminatory" lawsuits, taxes and fines
At the same time, the White House has taken a tougher tone with the European Union. The US Trade Representative warned that European tech firms could face fees or restrictions if the EU does not roll back what it called "discriminatory" lawsuits, taxes and fines targeting American companies.
EU officials pushed back, saying their rules apply equally to all firms. The dispute follows a recent €140m fine against Elon Musk's X platform under the EU's Digital Services Act, highlighting deepening transatlantic friction over how big tech should be regulated.