Bursting AI bubble may be EU’s “secret weapon” in clash with Trump, expert says

December 18, 2025

TL;DR

The US threatened to impose restrictions on large EU service providers as retaliation for EU tech regulations and investigations.
Nine EU firms, including Spotify and DHL, were named by the US Trade Representative's Office (USTR) in a warning on X.
The conflict escalated after Elon Musk's X was fined for violating the EU's Digital Services Act, a move criticized by the Trump administration as censorship.
The European Commission stated its intention to defend its tech regulations and enforce them fairly.
The USTR highlighted the substantial free services and economic contributions US companies provide to the EU.
A US national security report questioned the EU's reliability as an ally due to its tech overregulation.
An expert suggested the EU could leverage the potential bursting of the US "AI bubble" to pressure Trump.
Potential EU actions include disrupting Nvidia's access to crucial microchip-etching machines and cracking down on lax data enforcement in Ireland.
The EU could also increase enforcement of tech regulations concerning data mismanagement, impacting companies like Google and Meta.
Some experts believe these measures could destabilize the US AI market and negatively impact Trump's approval ratings.

Continue reading
the original article