Has the “Brussels effect” run its course? The term was introduced in 2012 by Anu Bradford, an international trade law expert at Columbia University, to describe the European Union as a regulatory powerhouse shaping global affairs. In an era of accelerated globalization, Brussels established itself as the main issuer of standards and legal frameworks, compelling other blocs to adjust for economic reasons. The sheer size of the EU market – combined with its regulatory reach – ultimately convinced international companies that maintaining less stringent legal frameworks was not worthwhile. But that view of the world may now be a thing of the past.

Two processes are at work. The first originates in the United States and has accelerated since Donald Trump’s return to the White House. From the outset of his tariffs campaign, he has explicitly targeted the EU’s regulatory power by accusing the 27 member states of attacking “incredible American tech companies.” He has repeatedly called for the dismantling of the Digital Services Act and the Digital Markets Act.

This legislation responds to the tendency of internet giants to undermine privacy, distort competition and warp the informational space in ways that conflict with our values and laws. American companies see European rules as obstacles to their business models and have found Trump to be their most ardent advocate.

The US administration now uses this as a bargaining chip to reduce tariffs imposed on European exports. At a summit held in Brussels on November 24, US Secretary of Commerce Howard Lutnick demanded the unraveling of European digital laws in exchange for a deal on steel and aluminum. These hard-nosed negotiations are putting pressure on Europe, which is being urged to trade crucial legislation for the lifting of questionable tariffs – measures whose legality the US Supreme Court may soon review.

You have 62.31% of this article left to read. The rest is for subscribers only.