The European Union has reaffirmed its sovereign right to regulate digital services and technology firms following threats from U.S. President Donald Trump to impose tariffs and sanctions on countries that implement digital services taxes affecting American tech companies. The EU emphasized that its Digital Services Act (DSA), Digital Markets Act (DMA), and AI Act are designed to ensure accountability and apply equally to all platforms, not targeting U.S. firms specifically. Brussels rejected claims that its regulations are unfair and stated that it will not yield to pressure from Washington. In response to Trump's tariff threats, the European Commission indicated plans to propose removing all tariffs on U.S. industrial goods by the end of the week to meet Trump's demands, signaling an effort to ease trade tensions between the EU and the U.S. The EU also dismissed accusations that its policies unfairly target American high-tech companies, maintaining that regulating the digital economy is within its sovereign prerogative.