The Trump administration is turning up the heat on Europe, urging EU leaders to abandon a new AI rulebook that would impose stricter standards on developers of advanced artificial intelligence technologies.
According to Bloomberg, the US Mission to the EU recently contacted European Commission officials, as well as several national governments, pushing back against the proposed “AI code of practice.” While the code is technically voluntary, it’s designed to align companies with the EU’s broader Artificial Intelligence Act — a law that carries hefty fines of up to 7% of annual sales for non-compliance.
Commission spokesman Thomas Regnier confirmed receipt of the US letter, but declined to provide further details.
A Growing Rift Over Tech Regulations
The move highlights escalating tensions between the US and Europe over technology governance. President Trump has repeatedly criticized the European Union’s aggressive regulation of tech companies, accusing it of unfairly targeting American firms like Apple (AAPL), Meta (META), and Google (GOOG).
At the World Economic Forum in Davos earlier this year, Trump labeled the EU’s tech regulations as “a form of taxation” against American innovation. His administration’s latest push suggests a broader strategy: to roll back Europe’s ambitions of becoming the world’s primary digital rulemaker.
Why the US Is Pushing Back
Critics of the European AI code argue that it exceeds the scope of the AI Act and introduces new, burdensome compliance obligations. The US letter reportedly went as far as asking the EU to pause the entire multi-phase AI Act implementation until Washington’s concerns are addressed.
The Trump administration’s concerns center around the possibility that excessive red tape could stifle innovation and restrict free speech rights — especially for US companies developing cutting-edge AI models.
An Offer to Collaborate
Despite the hardline tone, the US also extended an olive branch. The administration offered its technology experts to assist EU officials in clarifying aspects of the AI code and to work toward what it calls a “more innovation-friendly” regulatory framework.
Still, Europe seems unlikely to easily abandon its AI ambitions. The Artificial Intelligence Act is a flagship policy for the EU, symbolizing its push to assert more influence over the global tech sector at a time when AI capabilities are advancing at breakneck speed.
What Happens Next
If the EU chooses to move forward with the AI code as planned, it could set up one of the most significant regulatory clashes between the US and Europe since the GDPR privacy law came into effect. Meanwhile, tech companies worldwide are left grappling with growing uncertainty about how — and where — they can safely innovate.
The Trump administration’s pressure campaign is a clear sign that the global AI race is no longer just about technology — it’s about who gets to write the rules.
