Trump Administration Battles Global 'Data Sovereignty' Trends

The Trump administration is actively pushing back against international efforts to regulate U.S. tech firms in handling foreign data, fearing impacts on AI services and digital trade. Diplomatic cables reveal U.S. diplomats are advised to counter initiatives like 'data sovereignty' that could disrupt data flows and enforce costly regulations.

In a diplomatic cable seen by Reuters, the Trump administration has instructed U.S. diplomats to oppose global efforts aimed at regulating data handling by U.S. tech firms, a move seen as part of a broader resistance to data sovereignty measures proposed by foreign countries. The cable, signed by Secretary of State Marco Rubio, highlights potential disruptions to global data flows, increased cybersecurity risks, and threats to civil liberties.

The U.S. Department of State, while not commenting directly on the cable, has stated its support for cross-border data flows that encourage growth and safeguard privacy without imposing burdensome regulations. This position is in response to mounting pressures, particularly from Europe, where data sovereignty initiatives are gaining traction amidst rising tensions over U.S. trade policies and digital dominance.

Notably, the cable criticizes the European Union's General Data Protection Regulation (GDPR), citing it as a burdensome data processing rule. It also highlights China's restrictive data policies, as part of technology initiatives that enhance its global influence. As tensions rise, the U.S. is fostering international collaborations, such as the Global Cross-Border Privacy Rules Forum, to maintain open data channels worldwide.