Trump is doing Britain a favor by targeting its tech laws

It will be an unacceptable intrusion on our sovereignty. And it will pave the way for American domination of the internet. Ministers will no doubt be appalled by the suggestion by President Trump that he will impose tariffs on the UK if it doesn’t rip all the tech legislation that he doesn’t like, especially if that is driven by his new friends in Silicon Valley. But hold on. Sure, the interference in our domestic regulation is unwelcome. And yet, Donald Trump may also be doing us a favor — we have passed some terrible legislation and we would be better off without it. 

The UK may soon face tariffs from the US, by far its largest export market, if we don’t make changes to the way we regulate the tech industry. In a memo titled “Defending American Companies and Innovators From Overseas Extortion and Unfair Fines and Penalties” (somehow the title suggests the conclusion is already clear) the president has asked the treasury and commerce departments to assess whether EU and British law harms American companies. If it does, tariffs will be slapped on the offending nation unless the law is changed.

Of course, it is easy to argue that is completely unacceptable. After all, the UK is a sovereign nation, and it is not up to anyone in Washington to decide what laws it passes. Likewise, with Elon Musk as his “chief buddy,” and with Meta’s Mark Zuckerberg getting closer to Trump all the time, it may look as if the regulations will be written by a handful of tech tycoons. Ministers will be tempted to tell the Americans to keep out of their affairs. If tariffs are the result, so be it. 

Here’s the real issue, however. In reality, Trump has a point. The Online Safety Act is a terrible piece of legislation that restricts freedom of speech online, whilst at the same time making it much harder for new companies to get into the market because it is impossible for them to afford the huge compliance costs it imposes on anyone operating online. Likewise, the Digital Markets, Competition and Consumers Act massively increases the power and prestige of the regulators, at huge expense, while doing very little for the consumer, and, once again, making it far harder for new companies to break into the market. 

Much like the European Union, the UK has been concentrating on how to regulate technology instead of working out how to create a vibrant, growing industry of its own. In reality, you can’t control tech, or indeed influence its development, if you don’t have any. President Trump’s meddling in UK legislation may be worrying. On this occasion, however, he would be doing Britain a favor — and saving it from some genuinely terrible laws.