Bessent Demands Europe Scrap ‘Unfair’ Regulatory Shakedown

Treasury Secretary Scott Bessent warned European allies Tuesday that their digital services tax on American tech firms threatens broader trade relations and Western technological unity.

Europe’s rollout of tech regulation laws, like the Digital Services Act and the Digital Markets Act have become a sticking point in wider transatlantic trade negotiations. American officials like Bessent argue such digital taxes unfairly burden U.S. firms and could undercut joint competition with China. (RELATED: ‘Strong And Clear Message’: European Bureaucrats Slap American Tech Giants With Massive Fines)

“We’re negotiating with a lot of different interests,” Bessent said at a White House press conference Tuesday. “Some of the European countries have put on an unfair digital service tax on our big internet provider — France and Italy — other counties, Germany and Poland, don’t have that. So we want to see that unfair tax of one of America’s great industries removed. It’s going to be a give and take. They have some internal matters to decide before they can engage in an external negotiation.”

The comments signal a more combative approach from the Trump administration, which has long criticized Europe’s regulatory handling of American tech platforms — but U.S. officials now appear intent on making regulatory rollback a precondition for deeper economic integration.

Countries like France and Italy do indeed employ digital service taxes that target revenue streams of American firms like Google, Meta and Amazon. European officials claim the levies address corporate tax avoidance, but the Trump administration has characterized such fines as a “source of revenue for countries that have failed to cultivate economic success of their own.”

“The [Digital Services Act] regulates online intermediaries and platforms such as marketplaces, social networks, content-sharing platforms, app stores, and online travel and accommodation platforms,” the European Commission’s website states. “Its main goal is to prevent illegal and harmful activities online and the spread of disinformation. It ensures user safety, protects fundamental rights, and creates a fair and open online platform environment.”

Sal Nuzzo, executive director of Consumer’s Defense, framed the trade talks as an opportunity to “[deliver] a blow to our shared adversary.”

“When our allies punish U.S. companies while doing business with communist China, it makes things more expensive for us,” Nuzzo told the Daily Caller News Foundation. “The ongoing trade negotiations present the perfect opportunity for our European allies to strengthen our partnership through more open and fair regulatory regimes resulting in a win for both parties and delivering a blow to our shared adversary.”

The economic imbalance has been stark. Between 2013 and 2023, U.S. digital services exports to the EU jumped fro $12.8 billion to $17.9 billion, yet American firms were hit with roughly $5.3 billion in data privacy fines — more than 83% of all such penalties levied under Europe’s General Data Protection Regulation (GDPR) framework, according to Information Technology and Innovation Foundation.

Andrew Bremberg, former U.S. ambassador to Geneva and director of the Domestic Policy Council, said Europe’s regulatory posture has long disadvantaged American firms and threatens to derail cooperation on shared strategic priorities. (RELATED: Europe’s Bureaucrats Whistle Along As They Barrel Towards China’s Green Energy Trap)

“American workers and businesses have been frustrated for decades by the unfair tariffs and burdensome regulations put in place by European countries looking for an economic advantage,” Bremberg told the DCNF. “Secretary Bessent is right to call out the protectionist and harmful policies targeting one of our fastest growing and innovative industries. As President Trump and his cabinet bring foreign leaders to the table for trade talks, our European partners must take good faith steps toward a more fair, balanced, and common-sense approach to our trade and international business relationships.”

With Brussels pushing ahead on both the Digital Markets Act and the Digital Services Act — two initiatives aimed at reining in Big Tech — U.S. officials fear the EU is building a legal environment that singles out American firms while giving Chinese competitors a pass.

US Vice President JD Vance (R) speaks during a plenary session at the Artificial Intelligence (AI) Action Summit, at the Grand Palais, in Paris, on February 11, 2025. (Photo by LUDOVIC MARIN/AFP via Getty Images)

Vice President JD Vance has also sounded the alarm, warning European leaders their regulatory zeal could “kill a transformative industry,” signaling that the Trump administration will not tolerate rules it views as censorship or industrial sabotage.

“The Trump administration is troubled by reports that some foreign governments are considering tightening the screws on U.S. tech companies with international footprints,” Vance said at the Paris AI Summit in February. “Now, America cannot and will not accept that, and we think it’s a terrible mistake not just for the United States of America but for your own countries.”