The unthinkable has happened, and the United States has become an adversary to Europe under the Trump administration’s national security strategy. Yet within this disaster lies the gift of clarity: Europe must fight back. And the good news is that Europe holds powerful cards that could threaten the foundational pillar of the current U.S. economy: artificial intelligence.
Article contents:
- Introduction
- The U.S. economy and the AI bubble
- Card one: ASML’s chip monopoly
- Card two: Data and privacy laws
- Political leverage and the midterms
- A lesson from Brazil
- Conclusion: The inevitable confrontation
- Frequently asked questions
Introduction
Writing in the Guardian, author Johnny Ryan argues that new U.S. policy has put Europe on the defensive, but that it possesses strong deterrent tools. The American bet on artificial intelligence has become so massive that AI investments have turned into the primary driver of economic growth, accounting for 92% of GDP growth in the first half of this year. Without it, growth would have been virtually nonexistent.
The U.S. economy and the AI bubble
Despite Trump’s positions, he stands on shaky economic ground. His political alliance is also unstable, having failed to pass artificial intelligence legislation due to Republican concerns over job displacement and technology’s impact on children. This is where Europe’s opportunity to exert pressure lies.
Card one: ASML’s chip monopoly
Dutch company ASML holds a global monopoly on the photolithography machines essential for producing the advanced chips used by Nvidia. Banning exports of these machines would be painful for the Dutch economy, but it would be devastating to Trump and the U.S. economy, which relies entirely on the steady flow of this technology. Europe holds the key to deciding whether the American economy expands or contracts.
Card two: Data and privacy laws
The second, and easier tool to apply, is enforcing long-neglected European data laws against major U.S. tech companies. Documents show that companies like Google and Meta could be at risk due to their data practices. If Brussels decides to crack down, especially on Ireland—a hub for these firms—tech companies might be forced to completely rebuild their systems, threatening the AI “bubble” that relies on training models on vast amounts of unchecked data.
Political leverage and the midterms
If this dual pressure is applied, tech companies will face an existential crisis, and Trump will face angry voters frustrated by economic instability in the 2026 midterm elections. Voters did not cast ballots to lose their freedoms, and an alliance with deeply unpopular tech companies could hurt Trump.
A lesson from Brazil
The article points to Brazilian President Luiz Inácio Lula da Silva as an example, noting how he stood firmly against Trump’s “bullying” and enacted laws to protect children from digital platforms, forcing Trump to tone down his rhetoric. Europe needs to adopt this firm approach.
Conclusion: The inevitable confrontation
European Commission President Ursula von der Leyen holds the fate of the American economy and Trump’s presidency in her hands. Hesitation will not work; the only way to protect European democracy is to boldly use these leverage points.
Frequently asked questions
Question: What is ASML?
Answer: It is a Dutch company that produces the only machines in the world capable of manufacturing advanced electronic chips used in artificial intelligence.
Question: How do European data laws affect American AI?
Answer: Artificial intelligence models rely on massive amounts of data for training. Strict European laws could block the use of European citizens’ data, hindering the development of these models.
