Sweden and the EU are now under severe pressure from the United States. Donald Trump, once again holding the presidency, is threatening trade policy and legal action against countries that tax digital services or regulate the major tech companies. His latest executive order, which targets digital taxes and criticises European regulations such as the Digital Markets Act (DMA) and the Digital Services Act (DSA), demonstrates a unilateral and authoritarian agenda. Tensions regarding trade, technology, and digital rights are escalating, and Europe must act decisively to protect citizens’ freedoms and rights against authoritarian pressure from the United States.
When the United States declares that trade barriers and tariffs may be introduced in response to European initiatives, all EU Member States are affected. While the issue primarily concerns taxation of digital services, it is underpinned by a deeper conflict over what digital society we should have. In Europe, we have taken as our point of departure that citizens’ privacy, freedom of expression, and security must guide policy. The current American stance, under Trump’s leadership, instead appears to emphasise the freedom of action for American companies, at the expense of social responsibility and shared rules of engagement. Here, too, we see Trump departing from a rules-based order and invoking the law of the strongman.
From a historical perspective, Europe has a long tradition of prioritising citizens’ rights. Individual privacy is deeply rooted here, reflected in both national constitutions and the EU Charter of Fundamental Rights. The General Data Protection Regulation (GDPR) is one of the most prominent examples, with far-reaching requirements for how information about individuals may be gathered, processed, and stored. Now, this European civic perspective collides with an American administration that claims European regulation distorts competition for American companies.
The matter is not only about technical details of digital taxation or how legislation for tech firms should be shaped, but also about the scope of democracy. When Trump maintains that American companies “are generally not otherwise subject to foreign jurisdiction” and that “America’s economy should not be a revenue source for others,” he articulates a concept of sovereignty centred on unilateral self-determination and economic power. This contrasts sharply with the European stance, in which collaboration and negotiation have served as methods of avoiding escalating trade conflicts.
Sweden has a long tradition of developing democracy based on openness, independent institutions, and the protection of fundamental rights. We must not yield to American threats of trade sanctions by weakening our data protection or transparency. The EU must stand united and assert a strong position. Digital taxation of the tech giants is not merely about the economy, but also about fairness and sovereignty. If we yield to Trump’s aggressive policies, we set a dangerous precedent and signal weakness in the face of other major powers. Europe must show that it will not compromise its values.
As Trump now openly declares an intention to strike back at what he terms “extortion” by foreign governments, Sweden and the EU need to respond with a joint and forceful position. Digital taxation and regulatory measures are not designed to disadvantage American companies, but rather to create a transparent and legally sound system in which all actors operate under equal conditions. Through strong coordination within the EU, we avoid placing individual Member States in the line of fire. Unity also enables us to leverage our economic and political clout to promote fair trade.
For this strategy to succeed, Sweden and other EU countries must act jointly to defend their democratic traditions. In light of the prevailing uncertainty and heated rhetoric, clear steps are required:
- Establish a united and unequivocal European approach on digital services taxation.
- Stand firmly behind EU legislation and regulations, ensuring an open and pluralistic public discourse.
- Invest in digital resilience and continuity management. Encourage research, development, and investment in European cloud services, data management, and AI, in order to reduce dependence on foreign platforms and thus strengthen Europe’s resilience.
- Demonstrate political solidarity within the EU to counter division. When individual countries face criticism or trade sanctions from the United States, other EU Member States must respond collectively.
- Develop common EU strategies to combat disinformation and cyber threats. Authoritarian leaders exploit digital vulnerabilities to sway public opinion and consolidate power. Coordinated measures can protect democracy.
Europe finds itself at a juncture where we must once more assert our fundamental values. While Trump’s latest decree concerns digital taxation and regulations, at root it raises the question of whose interests should take precedence—those of American tech companies or those of EU citizens. By adhering to the principles of the rule of law, Sweden and the EU can jointly defend democracy. This is a responsibility we cannot afford to neglect.