The approach could also set a precedent. By targeting European regulators, Washington undercuts its own long-standing opposition to extraterritorial law and could encourage countries such as China or India to adopt similar tactics against US officials.

Analysts say the fallout from rising US-EU tensions is already visible, with global projects delayed, duplicate systems built to satisfy political requirements, and reputational risks for firms seen as aligning too closely with Washington.

“Expect higher compliance costs and legal risk from intensified DSA and DMA enforcement in the short term if Trump goes through with this (potential fines under DSA & DMA, plus remediation mandates and audits),” Mittal said. “Prepare for conflicting orders between US measures and EU law, requiring clear escalation paths, local entity decision rights, and scenario playbooks for service continuity.”