Asger Risom
At the center of the dispute is artificial intelligence, which the US now frames as a defining factor of economic and geopolitical survival.
A sharp warning from Washington, who just recently chose to invade a neighbouring country, has reignited tensions over technology, growth, and power across the Atlantic. As the Trump administration enters its second year, senior US officials are signaling that patience with Europe’s regulatory approach is wearing thin.
At the center of the dispute is artificial intelligence, which the US now frames as a defining factor of economic and geopolitical survival.
A stark message
Speaking in Brussels, Jacob Helberg, the US under secretary of state for economic affairs, said Washington sees Europe’s economic trajectory as a growing crisis.
He linked sluggish growth and strict regulation to what he described as a widening gap between the US and the European Union, warning that the continent risks becoming an also-ran in what American officials increasingly call the “AI century.”
“I know that the national security strategy… drew a lot of attention in Europe,” Helberg said, referring to the December release of the US National Security Strategy. “That language is a warning. It’s not an insult.”
Diverging economies
Helberg contrasted strong US growth with stagnation in major European economies, particularly Germany. He said there is “alarm in Washington” that without reforms, the divergence could become permanent.
The EU’s current push to simplify regulation, he added, represents a rare chance to reverse that trend before it hardens into structural decline.
For US officials, AI policy has become shorthand for a broader debate about competitiveness, energy costs, and innovation.
One rule too many
The EU’s AI Act drew Helberg’s sharpest criticism. He described it as a “one law to rule them all” approach that risks overregulating an entire technology.
“We believe that regulating the technology as a whole… will ultimately lead to massive overregulation,” he said, arguing that such rules protect incumbents while choking off startups.
Europe, Helberg said, has talent and institutions, but high energy prices and heavy rules are holding it back.
Pax Silica vision
The briefing also highlighted Pax Silica, a US-led economic security pact signed last month that includes countries such as the UK and the Netherlands, but not the EU as a bloc.
The agreement focuses on securing the full AI supply chain, from critical minerals to chips and energy. Helberg said Europe risks missing out on the infrastructure buildout needed to support AI due to regulatory bottlenecks.
Security and alignment
Helberg tied economic policy directly to security, cautioning that Europe’s long-standing reliance on US defense comes with expectations of alignment.
He warned against deeper dependence on “outwardly adversarial” powers, while making clear that Washington is prepared to move ahead without Brussels if needed.
Sources: U.S Department of State; Brussels Hub
