U.S. Threatens Sanctions Over EU Digital Services Tax—An Unprecedented Breach of Norms
Date: 26 August 2025
Executive Summary
- The U.S. government is considering sanctions—like visa bans—against EU or member-state officials who implement the Digital Services Act (DSA), a sweeping regulatory framework governing online platforms in Europe.
- These threats signal an extraordinary escalation—targeting individuals, not just policy or trade retaliation.
- Such actions defy normal diplomatic practice, where negotiations, multilateral channels, and proportional economic responses prevail.
What’s happening and why it matters
Threats go personal
The Trump administration, reacting against perceived anti-U.S. bias embedded in EU digital legislation, is exploring sanctions that would personally impact policymakers-namely EU or member-state officials responsible for implementing the Digital Services Act (DSA). Options include visa restrictions, a level of personal targeting rarely seen in trade disputes.
A still deeper escalation
Beyond personal sanctions, President Trump has publicly threatened substantial additional tariffs on countries enforcing digital taxes or DSA-like rules and even proposed export restrictions on advanced U.S. technologies and semiconductors.
Why this is completely out of step—and worrying
1. Personalising pressure
Foreign policy and trade typically target government policy or national interests—not individual officials. Visa bans as diplomatic leverage are rare, especially in trade contexts. This move breaches accepted norms of state-to-state engagement.
2. Avoiding diplomatic channels
Standard procedure involves negotiation (e.g., through the WTO) or retaliation via tariffs—never personnel sanctions. Here, the U.S. is bypassing multilateral process, escalating to direct personal consequences.
3. Undermines independent regulation
The DSA is a democratically enacted EU law addressing issues from hate content to marketplace fairness. Pressuring—or punishing—the individuals enforcing it undermines the sovereignty of regulatory processes and EU self-determination.
4. Risks destabilizing global standards
If one power can sanction officials over digital regulation, it sets a troubling precedent—governments could increasingly wrangle over technology policy through coercive means, not diplomacy.
GTPA Perspective: What SMEs and policymakers should know
- Prepare for disruption: Regulatory retaliation could choke cross-border digital trade—plan alternate routes and compliance work.
- Watch for diplomatic fallout: These tensions could delay broader U.S.–EU agreements, disrupt tech cooperation, and slow digital market alignment.
- Advocate for restraint: EU policymakers, trade associations, and SMEs need to rally behind preserving regulatory autonomy and resisting personal politicization of digital policy.
In Summary
A U.S. move to threaten sanctions on individual EU officials over the Digital Services Act is a radical escalation—breaking from conventional diplomacy and endangering the independence of regulatory governance. U.S.–EU ties are entering a perilous phase, and SMEs operating in digital services must stay informed, pragmatic, and prepared for an uncertain terrain ahead.