For decades, American companies have led the way in technological breakthroughs, benefiting American consumers and ensuring the U.S. continues to lead the rest of the world in innovation. Amazon has revolutionized e-commerce, Google has powered our Internet searches, and Meta has allowed us to expand our social network — along with many others.
However, for several years, the European Union (EU) quietly and insidiously attacked these companies through the Digital Markets Act (DMA) and other digital trade regulations. These discriminatory EU regulations have painted a target on the back of American companies and levied taxes on their success. Under the Biden administration, the EU was given free rein to harm American businesses — but no longer. The Trump administration has taken action and must continue to protect American leadership and force the EU to repeal the DMA.
Despite earlier commitments, it’s clear that the EU is not close to implementing measures to reduce its digital trade barriers, clearly violating the joint trade agreement framework signed earlier this year. Now the bloc may be running scared. U.S. Trade Representative (USTR) Jamieson Greer recently acknowledged that the EU has not been responsive to the U.S. concerns about these trade barriers. Greer cited that the federal government has various investigatory tools, like a Section 301 investigation, to produce a negotiated outcome. This is exactly right.
Dialogue is not enough. Anything short of a repeal of the DMA would still result in an uneven playing field designed to harm American businesses. If the bloc refuses to rescind these harmful regulations, Section 301 of the Trade Act of 1974 should be invoked by the Trump administration to launch an investigation into the EU to hold it accountable for this discriminatory burden on U.S. commerce.
Section 301 tariffs have proven to bring countries to the negotiating table and communicate that America, under the Trump administration, will not be taken advantage of. During the first Trump administration, USTR used a Section 301 investigation to determine that France’s digital services tax was “unreasonable, discriminatory, and burdens U.S. commerce.” In response, the Trump administration announced tariffs on additional French products in July 2020, prompting France to enter negotiations on trade barriers — President Donald Trump’s art of the deal —before the tariffs were set to go into effect in January 2021.
Last month, USTR and other administration officials repeatedly warned that a Section 301 trade investigation could be launched against South Korea if its leaders continue to pursue legislation that is harmful to US tech innovators. Additionally, in July 2025, USTR initiated an ongoing Section 301 investigation into the Brazilian government’s acts and policies related to the digital economy and electronic payment services that restrict U.S. commerce. These actions rightfully demonstrate that this administration is not afraid to defend American industry from foreign red tape and harmful regulations.
Initiating a Section 301 investigation on the EU would be another justified effort from President Trump to correct the failures of the previous administration. Under the Biden administration, the Federal Trade Commission (FTC) colluded with the EU on implementing the DMA — all under the guise that it would help consumers and jumpstart innovation, when in fact it was an importation of harmful anti-business policies on U.S. companies.
The DMA is European lawfare against American technology companies, upending years of longstanding trade between the U.S. and the EU. Five out of the seven companies listed as a “gatekeeper” — an EU designation for companies subject to excessive regulatory scrutiny under the DMA — are American.
The trade agreement framework signified the EU’s promise to remove these digital trade barriers, but it’s clear they are either not moving with a sense of urgency or intentionally dragging their feet in an effort to hurt American companies. If the Europeans don’t deliver the news Commerce Secretary Howard Lutnick and Ambassador Greer need to hear in Brussels, USTR should initiate a Section 301 investigation to rectify this wrong.
Robert Romano is the Executive Director of Americans for Limited Government.
