The administration of U.S. President Donald Trump is considering imposing sanctions on European Union or member state officials responsible for implementing the bloc's landmark tech rules through the Digital Services Act (DSA), a Reuters report said, citing two sources familiar with the matter.
The possible sanctions stem from U.S. complaints that the law censors Americans and imposes costs on U.S. tech companies, the report indicated.
Such a move would be an unprecedented action that would escalate the Trump administration's fight against what it sees as Europe's attempt to suppress conservative voices.
Senior State Department officials have yet to make a final decision on whether to go ahead with the punitive measures that would likely come in the form of visa restrictions, the sources said.
It was unclear which EU or EU member state officials the action would target, but U.S. officials held internal meetings on the topic last week, according to the sources.
Trump on Monday threatened countries that have digital taxes with "subsequent additional tariffs" on their goods if those nations did not remove such legislation.
The European Commission on Tuesday asserted the "sovereign right" to regulate the activities of tech giants within the bloc, rejecting claims by Trump that its rules unfairly harm U.S. firms.
"It is the sovereign right of the EU and its member states to regulate economic activities on our territory which are consistent with our democratic values," European Commission chief spokesperson Paula Pinho told reporters.
Regarding "President Trump's statements on the fact that we're targeting US companies, this is something that we can firmly rebut," added the bloc's tech spokesopersonThomas Regnier.
While trading partners frequently complain about domestic rules they see as unfairly restrictive, sanctioning government officials over such a regulation is extremely rare. The relationship between the Trump administration and the European Union is already frayed by tariff threats and tense negotiations, as well as U.S. criticism of the treatment of U.S. tech companies.
Citing an internal State Department cable, Reuters this month reported that the Trump administration has instructed U.S. diplomats in Europe to launch a lobbying campaign to build opposition to the Digital Services Act in an effort to have it amended or repealed.
The EU's DSA is meant to make the online environment safer in part by compelling tech giants to do more to tackle illegal content, including hate speech and child sexual abuse material.
Washington has said the EU is pursuing "undue" restrictions on freedom of expression in its efforts to combat hateful speech, misinformation and disinformation, and that the DSA is further enhancing these curbs.
In the early-August directive, Secretary of State Marco Rubio ordered U.S. diplomats to regularly engage with EU governments and digital services authorities to convey U.S. concerns about the DSA and the financial costs for U.S. companies.
In May, Rubio had threatened visa bans for people who "censor" speech by Americans, including on social media, and suggested the policy could target foreign officials regulating U.S. tech companies.
A State Department spokesperson neither confirmed nor denied Reuters' reporting on potential punitive action.
"We are monitoring increasing censorship in Europe with great concern, but have no further information to provide at this time," the spokesperson said in an email.
Trump posted on social media late on Monday: "With this TRUTH, I put all Countries with Digital Taxes, Legislation, Rules, or Regulations, on notice that unless these discriminatory actions are removed, I, as President of the United States, will impose substantial additional Tariffs on that Country's Exports to the U.S.A., and institute Export restrictions on our Highly Protected Technology and Chips."
Trump in February had ordered his trade chief to revive investigations aimed at imposing tariffs on imports from countries that levy digital service taxes on U.S. technology companies.
The Trump administration has generally moved away from the traditional U.S. promotion of democracy and human rights, instead focusing on trying to clinch bilateral trade deals. But it has been advocating for selective causes, particularly those linked to right-wing politicians and what it sees as a muzzling of conservative voices online.
Washington imposed sanctions on a Brazilian Supreme Court justice overseeing the trial of Trump ally and former Brazilian President Jair Bolsonaro, accusing the judge of authorizing arbitrary pre-trial detentions and suppressing freedom of expression.
Most striking has been the administration's forays into the internal politics of European allies. Trump officials have denounced what they say is the suppression of right-wing leaders, including in Romania, Germany and France, and accused European authorities of censoring views such as criticism of immigration.
Top U.S. officials, including Vice President JD Vance, have repeatedly lashed out at European officials and regulations, accusing them of "censoring" Americans, a claim the EU rejects.
In February, at a conference usually known for displays of transatlantic unity, Vance stunned European leaders by accusing them of censoring the speech of groups such as Germany's right-wing AfD party and backsliding on democracy.
The EU's antitrust and tech chiefs told U.S. lawmakers in March that the new tech rule aims to keep digital markets open and is not targeted at U.S. companies.
U.S. social media companies like Facebook and Instagram parent Meta Platforms have said the DSA amounts to censorship of their platforms.
