The Trump administration is considering sanctioning European Union and member state officials over the bloc's landmark Digital Services Act, escalating tensions with Brussels as Washington also threatens tariffs on countries that impose digital taxes on U.S. technology companies, according to people familiar with the matter.
Two sources said senior State Department officials discussed the possibility of visa restrictions on European officials responsible for implementing the DSA, a sweeping online content law the U.S. argues unfairly targets American firms and censors conservative voices. A final decision has not been made. "We are monitoring increasing censorship in Europe with great concern but have no further information to provide at this time," a State Department spokesperson said.
President Donald Trump on Monday sharpened his criticism of Europe's regulatory push. "Digital taxes, legislation, rules or regulations are all designed to harm, or discriminate against, American technology," he wrote on Truth Social. "Unless these discriminatory actions are removed, I, as president of the United States, will impose substantial additional tariffs on that country's exports to the USA, and institute export restrictions on our Highly Protected Technology and Chips."
The DSA requires digital platforms to do more to remove illegal material, including hate speech and child sexual abuse content. EU officials say the law is designed to protect citizens and markets. "Freedom of expression is a fundamental right in the EU. It lies at the heart of the DSA," an EU Commission spokesperson said, rejecting U.S. allegations of censorship.
Washington has criticized the DSA as "undue" regulation of free speech. Secretary of State Marco Rubio instructed U.S. diplomats in August to lobby against the law, warning European governments of its financial impact on American companies. Rubio had previously threatened visa bans for foreign officials accused of "censoring" Americans on social media.
Trump's threats extend beyond the EU. The U.K. continues to apply a 2% digital services tax on global tech companies, raising about £800 million annually. Trump has denounced such levies as "overseas extortion" and signaled retaliation. "America, and American technology companies, are neither the 'piggy bank' nor the 'doormat' of the world any longer," he said Monday.
The tensions come as the U.S. and EU have been negotiating trade issues. While both sides pledged last week to "address unjustified trade barriers," Brussels said it would not alter digital rules. Several EU member states, including France, Italy, and Spain, maintain national digital taxes alongside the bloc's regulatory framework.
Other countries have already adjusted policies to avoid U.S. retaliation. Canada scrapped its digital services tax in June after Trump labeled it "a direct and blatant" attack. In the U.K., opposition leaders urged Prime Minister Keir Starmer not to yield. "The prime minister must rule out giving in to Donald Trump's bullying by watering down Britain's digital services tax," Liberal Democrat leader Ed Davey said. "The way to respond to Trump's destructive trade war is to work with our allies to stand up to him."
