The European Union should be ready to abandon its newly signed trade agreement with the United States if Washington attempts to force changes to the bloc’s digital regulations, a top EU official has cautioned. According to the Financial Times, Teresa Ribera, the European Commission’s executive vice-president and competition chief, said Brussels must remain “courageous” in the face of threats from President Donald Trump. She stressed that the EU could not allow itself to be subordinated to outside interests.

The remarks follow the conclusion of a transatlantic trade deal in late July, which European Commission president Ursula von der Leyen praised for offering “stability and predictability.” However, per the Financial Times, Trump has since threatened to impose tariffs and export restrictions on countries whose digital tax policies and technology laws he claims unfairly target American companies.

Ribera emphasized that the bloc’s flagship technology rules, including the Digital Services Act and the Digital Markets Act, are non-negotiable. “We may be kind, polite, try to find ways to solve problems and discrepancies but we cannot accept whatever [they demand],” she told the Financial Times. She added that the EU cannot be “subject to the will of a third country.”

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Brussels has already begun to implement its side of the deal, lowering tariffs on a range of US products such as cars and industrial goods. Yet Ribera warned that these commitments could be reassessed if Washington follows through with punitive measures. According to the Financial Times, she also questioned the practicality of the EU’s pledge to spend large sums on American energy and defense goods, pointing out that such purchases are typically made by member states or private actors rather than the Commission itself.

The comments come as Brussels continues investigations into major US technology companies, including Apple, Meta, and Elon Musk’s platform X. Ribera underlined that these probes would not be compromised by US threats, noting that American firms enjoy substantial profits in Europe but remain subject to the same laws as any other business operating in the market.

Per the Financial Times, Ribera made clear that while the EU has tried to rebuild trust with Washington, it will defend its regulatory sovereignty. “If we have got this general approach and there is this attempt to reopen things, of course the question is: ‘OK, there is no [trade] agreement then?’” she said. The warning highlights the fragile balance in transatlantic relations as both sides navigate tensions over digital regulation and trade.

Source: The Financial Times