US Considers Sanctions Over EU Tech Law, Escalating Trade Tensions

The Biden administration is weighing punitive measures against EU officials in response to the Digital Services Act (DSA), which US authorities claim unfairly targets American tech companies and censors free speech. Potential sanctions could include visa restrictions, though specific targets remain undetermined.

Internal State Department discussions reveal growing frustration with the DSA's content moderation requirements, which mandate stricter controls on hate speech and misinformation. The law has become a flashpoint in transatlantic relations, with US diplomats actively lobbying European counterparts for amendments.

While framed as online safety legislation by Brussels, Washington views the DSA as regulatory overreach that burdens US firms with compliance costs and speech restrictions. The coming decision could further strain relations already tense from previous trade disputes.