Amid rising tensions with the United States and new tariffs from President Donald Trump, Europe is stepping up efforts to reduce its reliance on American technology. EU leaders are calling for “tech sovereignty,” warning that continued dependence on US firms could pose strategic and economic risks. With most digital infrastructure in European countries powered by American tech giants, officials are now pushing to support homegrown companies and create independent systems in areas like cloud computing, artificial intelligence (AI), and digital payments.
Why Europe Wants to Cut Tech Ties with the US
The return of Donald Trump to the White House has reignited concerns in Europe about Washington’s unpredictability. Trade ties between the two sides have hit new lows, and EU leaders fear that the US could use its dominance in digital technologies as a weapon in economic disputes.
From smartphones to cloud platforms, everyday digital tools across Europe are largely powered by American companies like Microsoft, Apple, Google, and Meta. This dominance, once a matter of convenience, is now seen as a potential liability.
Henna Virkkunen, the EU’s tech policy chief, emphasized the urgency:
“We have to build up our own capacities when it comes to technologies.”
She highlighted AI, quantum computing, and semiconductors as the top three areas requiring European innovation and investment.
A New Era of “Buy European” Policies
The European Union is rolling out plans to favor local companies when it comes to public sector technology contracts. This “Buy European” push is gaining momentum.
Currently, US firms control around two-thirds of the European cloud market, with Amazon, Microsoft, and Google leading the way. In stark contrast, European providers account for just 2% of the market.
Benjamin Revcolevschi, CEO of French cloud provider OVHcloud, welcomed the shift:
“Incentives to buy European are important.”
This policy is not limited to the cloud sector. The EU is also looking to strengthen its position in AI development, calling for a preference for European companies in critical sectors.
The Data Dependence Problem
In 2023, about 23% of Europe’s high-tech imports came from the United States, second only to China. These imports include key items like semiconductors, smartphones, and medical technology.
EU lawmaker Stephanie Yon-Courtin, a digital policy expert, warned that the current setup leaves Europe vulnerable:
“Relying exclusively on non-European technologies exposes us to strategic and economic risks.”
Her concerns are shared by many across Europe’s tech and political landscape, especially as US restrictions on chip exports show how tech can be used as a geopolitical tool.
Rethinking Payments and Digital Finance
Another major area of concern is financial technology. US-based systems like Mastercard, Visa, and PayPal dominate Europe’s payments market.
European Central Bank President Christine Lagarde is among those calling for a “European offer” to challenge both American and Chinese platforms, such as Alipay.
EU member states have begun discussing the creation of a fully European digital payment system that could ensure financial independence.
What It Will Cost: A Price Tag in the Trillions
Building tech sovereignty won’t come cheap.
A policy initiative known as EuroStack estimates that creating a competitive European tech stack—including AI, semiconductors, and cloud infrastructure—will cost around €300 billion ($340 billion) by 2035.
However, the US trade group Chamber of Progress believes the real price could exceed €5 trillion.
Despite the costs, many in Europe believe the long-term benefits of tech independence far outweigh the expense—especially in an age where digital infrastructure is critical to national security and economic growth.
Regulation vs Innovation: Different Values
US officials have criticized European tech regulations, saying they stifle innovation.
Vice President JD Vance recently accused the EU of harming American firms through rules like the Digital Markets Act (DMA) and Digital Services Act (DSA)—laws designed to increase competition and protect users’ rights online.
Still, supporters of the EU’s values-based approach say these laws help reduce the continent’s dependence on foreign tech.
Bruce Lawson from the Norwegian browser company Vivaldi said the DMA has already made a difference:
“There was a significant and gratifying increase in downloads in Europe.”
He clarified the broader point:
“It’s not about being anti-American. It’s about reducing dependency on tech infrastructure with different views on data protection.”
A Shift Towards European Values in Tech
Europe’s digital policy is increasingly focused on protecting users’ privacy and giving them more control over their data—something many US companies have struggled with.
By offering alternatives built on European values, the EU aims to create a tech environment where innovation thrives without sacrificing privacy or transparency.
This approach is already reshaping the digital landscape. For example, new regulations require platforms to let users choose their default web browser—breaking the grip of US firms like Google and Apple.
Europe’s campaign for tech independence marks a major shift in the global digital economy. While it won’t be easy or cheap, EU officials believe the cost of inaction could be much higher.
As global tensions rise and trade wars loom, Europe is making a strategic bet: that homegrown innovation, strong values, and reduced reliance on foreign firms will lead to a safer, more secure digital future.
