US-EU Trade Framework Should Address Digital Barriers, Says ITIF

WASHINGTON—Following the announcement of a framework for an agreement on a US-EU trade deal, the Information Technology and Innovation Foundation (ITIF), the leading think tank for science and technology policy, released the following statement from ITIF Policy Analyst Hilal Aka:

While a framework that could avert a destructive transatlantic trade war is a welcome development, unless this potential agreement addresses the EU's systematic non-tariff attacks on American technology companies, it will be a significant missed opportunity.

In 2024 alone, the EU levied roughly $6.7 billion in fines against U.S. tech firms—about one-fifth of the EU's tariff revenue base. The true cost extends far beyond these headline figures. Forced business model changes, data localization mandates, and discriminatory regulations impose unquantifiable burdens that fundamentally undermine American companies' ability to innovate and compete globally.

The American technology industry drives U.S. technological leadership and economic competitiveness. Given the administration's goals for U.S. leadership in AI, it is imperative that these negotiations address Europe's discriminatory attacks on American AI companies.

Ideally, future trade discussions—now that the EU has acknowledged its unfair trade surplus advantage and agreed to "rebalance" trade relations through this framework—will finally address these discriminatory tech policies as the trade barriers they truly represent.