The Trump administration is considering sanctions against European Union or member state officials responsible for enforcing the bloc’s Digital Services Act, according to two sources familiar with the matter.

The potential move follows US complaints that the law censors Americans and increases costs for US tech firms.

Senior State Department officials have not yet decided whether to impose the measures, which could include visa restrictions.

It remains unclear which EU officials might be targeted, but sources said internal US discussions took place last week.

Sanctioning officials over a regulatory dispute is rare and would mark an escalation in tensions between Washington and Brussels.

The US has already urged European governments to reconsider or amend the Digital Services Act.

EU officials say the law protects freedom of expression while tackling illegal activity online, and reject US claims of censorship.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Personal sanctions over domestic regulations mark unprecedented diplomatic escalation

The Trump administration’s consideration of visa restrictions against EU officials represents an extraordinary departure from typical trade dispute resolution methods.

While trading partners frequently complain about domestic regulations they view as restrictive, sanctioning government officials over such rules is “extremely rare” according to diplomatic sources 1.

This approach contrasts sharply with traditional mechanisms like the Office of Foreign Assets Control, which typically focuses on financial penalties against businesses, such as civil penalties up to $250,000 for sanctions violations, rather than targeting foreign government officials implementing domestic law 2.

The move signals a shift from economic pressure to personal consequences for regulators, potentially setting a precedent that could fundamentally alter how nations address regulatory disagreements.

Previous US-EU tech disputes have centered on trade measures and diplomatic pressure, making the threat of personal sanctions against officials a significant escalation in transatlantic relations.

2️⃣ Regulatory divergence creates global platform compliance challenges