The Trump administration is considering imposing sanctions on European Union or member state officials responsible for implementing the bloc's landmark Digital Services Act, two sources familiar with the matter said, over U.S. complaints that the law censors Americans and imposes costs on U.S. tech companies.
Such a move would be an unprecedented action that would escalate the Trump administration's fight against what it sees as Europe's attempt to suppress conservative voices.
Senior State Department officials have yet to make a final decision on whether to go ahead with the punitive measures that would likely come in the form of visa restrictions, the sources said.
It was unknown which EU or EU member state officials the action would target, but U.S. officials held internal meetings on the topic last week, according to the sources.
Trump on Monday threatened countries that have digital taxes with "subsequent additional tariffs" on their goods if those nations did not remove such legislation. Although trading partners frequently complain about domestic rules they see as unfairly restrictive, sanctioning government officials over such a regulation is extremely rare.
The relationship between the Trump administration and the European Union has been frayed by tariff threats and tense negotiations, as well as U.S. criticism of treatment of U.S. tech companies. Citing an internal State Department cable, Reuters this month reported that the Trump administration has instructed U.S. diplomats in Europe to launch a lobbying campaign to build opposition to the Digital Services Act to have it amended or repealed.
The EU act is meant to make the online environment safer in part by compelling tech giants to do more to tackle illegal content, including hate speech and child sexual abuse material.
The U.S. has said the EU is pursuing "undue" restrictions on freedom of expression to combat hateful speech, misinformation and disinformation, and that the DSA is further enhancing such curbs.
In the early August directive, Secretary of State Marco Rubio ordered U.S. diplomats to regularly engage with EU governments and digital services authorities to convey U.S. concerns about the DSA and the financial costs for U.S. companies. In May, Rubio threatened visa bans for people who "censor" speech by Americans, including on social media, and suggested the policy could target foreign officials regulating U.S. tech companies.
A State Department spokesperson did not confirm nor deny Reuters' reporting on potential punitive action.
"We are monitoring increasing censorship in Europe with great concern but have no further information to provide at this time," the spokesperson said in an email.
An EU Commission spokesperson declined to comment on the potential for sanctions but had previously called censorship claims by the U.S. "completely unfounded."
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