Europe’s Strategic Levers Against Trump’s AI-Driven US Economy
Europe could counteract the economic strategies linked to Donald Trump through two main levers: export controls on ASML's lithography machines and enforcement of EU data regulations against US technology giants.
ASML, a dominant player in semiconductor lithography tools, if restricted in exports to the US and Taiwan, could slow down Nvidia’s supply of AI hardware and thus impede the growth of AI and datacenters in the US.
Additionally, the enforcement of EU data rules could compel US companies to fundamentally change their data practices. Particularly, a crackdown on Ireland’s previously lax enforcement could have global consequences, potentially forcing these firms to rebuild AI tools to ensure compliance with European standards.
AI technology is currently framed as the primary driver of US GDP growth, accounting for about 92% of economic expansion in the first half of the year. Without AI, the US GDP growth is estimated at just 0.1%.
Meanwhile, Trump's proposed AI moratorium bill has stalled in the Senate partly due to concerns within the Maga faction about worker displacement and mistrust towards the political influence of big tech, complicating his legislative agenda.
Ursula von der Leyen, President of the European Commission, could leverage these economic tools to challenge Trump’s policies, potentially pressuring the US to make policy concessions beyond previous norms.
The commentary also points to Brazil’s President Lula da Silva as an example of standing up to Trump, noting his open letter and UN speech alongside his calls for lower tariffs. It suggests Europe should align itself with democracies such as India, Brazil, and China to effectively resist Trump’s agenda.
