PULSE POINTS:
❓What Happened: The tax policy advocacy group, Americans for Tax Reform, is sounding the alarm that the European Union (EU) is continuing to use non-tariff trade barriers to disadvantage U.S. technology companies in the European market.
👥 Who’s Involved: Grover Norquist, president of Americans for Tax Reform; the European Union (EU); U.S. tech companies; and China.
📍 Where & When: Americans for Tax Reform’s president, Grover Norquist, laid out the concerns with EU regulatory burdens in a recent opinion editorial.
💬 Key Quote: “This is not regulation; it’s non-tariff protectionism disguised as principle,” Norquist said.
⚠️ Impact: Norquist warned that the EU’s actions could push American firms out of the European digital economy and risk ceding dominance to China.
IN FULL:
Grover Norquist, President of Americans for Tax Reform, has sounded the alarm over European Union (EU) policies that he claims unfairly target American technology firms. Writing in an opinion editorial this week, Norquist criticized the EU’s Digital Services Act (DSA) and Digital Markets Act (DMA) as measures designed to penalize U.S. companies through excessive regulations and censorship demands.
Norquist argues that these policies are not genuine regulatory measures but rather “non-tariff protectionism disguised as principle.” He accused the EU of benefiting from U.S.-developed platforms and technologies, such as cloud services and artificial intelligence (AI), while imposing fines and taxes that ultimately fund the European welfare state “at the expense of America.”
Recent years have seen growing tensions between U.S. tech firms and European regulators. For example, X (formerly Twitter), the platform owned by Elon Musk, faced scrutiny after signing an EU code of conduct aimed at combating “illegal hate speech online.” Musk’s somewhat more permissive approach to free speech has clashed with European laws, drawing criticism from EU leaders.
Norquist further emphasized that 80 percent of Europe’s digital technologies are imported, primarily from the United States. He cautioned that the EU’s approach could undermine collaboration with American innovators and pave the way for China to dominate the digital economy.
“Europe’s leaders must recognize their role in escalating trade tensions and commit to a unified front,” Norquist urged. “Let us innovate together, compete together, and halt China’s march toward economic and technological dominance.”
This reflects similar criticisms by President Donald J. Trump, who has hammered the EU for its tariffs on U.S. goods and its use of regulations, security measures, and value-added tax (VAT) to undermine the competitiveness of U.S. exports.
Image: European Union 2017 – European Parliament.
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