The Trump administration has directed U.S. diplomats to actively oppose foreign laws that restrict how American tech companies handle citizens’ data abroad. An internal State Department cable, dated February 18 and signed by Secretary of State Marco Rubio, described such measures as threats to artificial intelligence services, global data flows, and civil liberties.
Experts say the move signals a return to a more confrontational approach after previous efforts focused on building goodwill with European customers. The administration warned that data sovereignty rules could increase costs, introduce cybersecurity risks, and expand government control in ways that enable censorship.
Data Sovereignty in Focus
Data sovereignty or localization initiatives have accelerated, especially in Europe, amid ongoing tensions over U.S. trade policies and concerns about privacy and surveillance. European regulators, wary of American tech giants, have tightened rules on how data is stored and shared. The EU’s General Data Protection Regulation (GDPR) remains the most prominent example, restricting cross-border data transfers and imposing stiff fines on companies that fail to comply.
The State Department cable cited GDPR as “unnecessarily burdensome” and highlighted China’s restrictive data policies as an example of how technology rules can expand geopolitical influence. Beijing, it noted, bundles infrastructure projects with policies that provide access to international data for surveillance and strategic leverage.
Diplomatic Action Plan
The cable, labeled as an “action request,” instructed diplomats to track proposals that could limit cross-border data flows and to counter regulations deemed excessive. Talking points included promotion of the Global Cross-Border Privacy Rules Forum, a multinational initiative launched in 2022 by the United States, Mexico, Canada, Australia, and Japan to support free flow of data while ensuring privacy protections.
This directive follows a pattern of U.S. opposition to European digital regulation. Last year, diplomats were ordered to challenge the EU’s Digital Services Act, aimed at making the internet safer by forcing social media firms to remove illegal content. The U.S. is also reportedly planning an online portal to help users bypass content moderation, including restrictions on material flagged as hate speech or terrorist propaganda.
Analysis: A More Assertive U.S. Digital Strategy
The cable reflects a strategic shift toward actively protecting the interests of U.S. tech companies globally. While previous administrations attempted to engage Europe diplomatically, the current approach pressures foreign governments to loosen privacy and data storage regulations that could hinder U.S. business.
By framing data sovereignty laws as a threat to AI development, cybersecurity, and civil liberties, the administration is positioning the free flow of data as a cornerstone of U.S. economic and technological influence. At the same time, rising competition from China in digital infrastructure and AI adds urgency, highlighting the geopolitical stakes of controlling international data flows.
The broader implication is a growing clash between national data policies and global digital commerce. As countries enact stricter rules to protect citizens’ data, U.S. tech firms and policymakers are increasingly asserting that global interoperability and AI innovation must take priority, signaling potential tensions in transatlantic and international digital governance for years to come.
With information from Reuters.