The European Commission on Tuesday affirmed its ‘sovereign’ right to regulate the activities of giant technology companies within the Union, rejecting President Donald Trump’s statements that its rules harm American companies.

The European Union has adopted a strong legal arsenal aimed at regulating the operations of giant technology companies, specifically through the Digital Markets Act concerning competition, and the Digital Services Act concerning content management.

Without explicitly naming the EU, Trump threatened on Monday to impose additional tariffs on countries that enacted laws he viewed as designed to “harm” American technology, just days after both sides released details of a difficult trade agreement.

European Commission spokesperson Paola Pinheiro told reporters in response: “The EU and its member states have the sovereign right to regulate economic activities on our lands in accordance with our democratic values.”

EU technology affairs spokesperson Thomas Renier added, “Regarding President Trump’s statements about targeting American companies, this is something we can strongly refute.”

The Digital Services Act obliges platforms to suspend user accounts that repeatedly post illegal content, such as hate speech, which critics across the Atlantic portray as “censorship.”

Renier said: “Claims that the Digital Services Act is a censorship tool are completely false and baseless.”

The EU has previously imposed hefty fines on major American companies, including Meta and Apple, under its new digital rules, which faced opposition from the Trump administration for months.

EU Trade Commissioner Maros Sefcovic confirmed last week that Brussels succeeded in “keeping these issues out of trade negotiations” with Washington, and that the EU’s “regulatory autonomy” is not up for discussion.

Trump wrote on his Truth Social platform on Monday, “Digital taxes, digital services laws, and digital markets regulation are all designed to harm or discriminate against American technology.”

He warned that if what Washington considers “discriminatory measures” are not lifted, he will “impose significant additional tariffs” on products from those countries and restrict exports of American technologies and chips.

He added, “America and American tech companies are no longer the world’s ‘cash cow’ or ‘doormat.'”

The Republican president has resorted to tariffs as a pressure tool to achieve various goals. This week, the US is set to begin doubling tariffs on Indian products due to its purchase of Russian oil, considered a key source of funding for the war effort in Ukraine.