Economy

EU and US Forge China Strategy Despite Digital Policy Clash: How Brussels Navigates Trump’s Demands

US criticizes EU digital laws, wants changes. Both sides seek China policy alignment despite friction.

October 1, 2025, 10:07 AM

World leaders at a G7 Summit meeting in Kananaskis, Alberta

World leaders, including Trump, Macron, Meloni, Carney, Starmer, Merz, von der Leyen, Costa, and Ishiba, attend the G7 Summit meeting in Kananaskis, Alberta. By Brian Jason / Shutterstock.com.

Executive Summary

US diplomats, including Ambassador Andrew Puzder, criticized EU digital, green, and economic policies, demanding adaptations to maintain favorable relations with President Donald Trump’s administration.

Ambassador Puzder specifically targeted EU digital laws, stating that no US president, particularly Trump, would tolerate foreign restrictions on US citizens’ First Amendment rights.

Despite policy disagreements, the US identified China as a key area for joint action with the EU, emphasizing the need for a shared understanding of China’s strategic and economic threat.

The Story So Far

The ongoing discussions between the EU and the United States are shaped by the American administration’s strong disapproval of European digital and economic policies, which President Donald Trump’s envoys insist must be adapted to maintain favorable relations. This pressure for regulatory change, particularly concerning digital laws, occurs even as the US simultaneously seeks the EU’s collaboration on a unified strategic and economic front against China, an area of perceived mutual threat.

Why This Matters

The potential return of President Donald Trump’s administration signals a conditional future for EU-US relations, where European digital and economic policies face significant pressure for adaptation to maintain favorable ties. This dynamic suggests the EU may need to make concessions on internal regulations to secure crucial US cooperation on global issues, particularly as both blocs prioritize a unified front against China’s strategic and economic challenges.

Who Thinks What?

US Ambassador Andrew Puzder, representing the US administration, believes the EU’s digital regulations are overly restrictive and must be “simplified” to align with American principles and maintain favorable relations with President Donald Trump, while also emphasizing the need for joint US-EU recognition of China as a strategic and economic threat.

European Union leaders seek continued collaboration with the United States on China policy, even as American envoys express strong disapproval of the bloc’s digital, green, and economic regulations.

European Union leaders continue to seek collaboration with the United States on China policy, even as American envoys express strong disapproval of the bloc’s digital regulations. This dynamic was evident at a forum held in Brussels on Tuesday, where US diplomats criticized Europe’s green, digital, and economic policies, emphasizing that the EU would need to adapt them to maintain favorable relations with President Donald Trump’s administration.

US Criticism of EU Policies

US Ambassador to the EU Andrew Puzder, who assumed his role last month, specifically targeted the EU’s digital laws. He advocated for a “simplification” of these regulations, stating that no US president, particularly President Trump, would tolerate a foreign government restricting the First Amendment rights of US citizens to an extent that the US government itself could not.

Ambassador Puzder made these remarks at an Atlantic Council event, underscoring the US position on digital governance. He insisted that such regulatory changes were crucial for the EU to remain in President Trump’s good graces.

Alignment on China Policy

Despite these policy disagreements, Puzder identified China as a key area for joint action after the ratification of a tariff deal agreed upon in Scotland in July. He stressed the importance of a shared understanding between the EU and the United States regarding China.

The ambassador emphasized the need for a “joint recognition… as to the strategic and economic threat of the People’s Republic of China.” This highlights a significant area of potential convergence amidst other contentious policy discussions.

Key Takeaways

The recent discussions in Brussels underscore a complex relationship where the EU and the US aim for strategic alignment on China, despite persistent US demands for changes in European digital and economic policies. The US administration, under President Donald Trump, continues to press for regulatory adjustments while prioritizing a unified front against China’s perceived economic and strategic threats.