Trump Administration Instructs Diplomats to Oppose Data Localization Rules Abroad

The Trump administration is directing diplomats to oppose foreign data localization laws, citing risks to AI services, cloud computing, and cross-border data flows. Critics view it as a confrontational stance on global tech regulation.

By Marcus Lee Published:

The Trump administration is instructing U.S. diplomats to oppose foreign data localization and sovereignty laws that could restrict the flow of personal data across borders. A February 18 State Department cable, signed by Marco Rubio, described such rules as potentially disruptive to artificial intelligence services, cloud computing, and global trade.

The cable urged diplomats to counter “unnecessarily burdensome regulations” and promote international frameworks supporting cross-border data flows. It cited the European Union’s General Data Protection Regulation (GDPR) as an example of rules that impose strict restrictions on transferring citizens’ data abroad.

Experts say the directive signals a shift toward a more assertive U.S. approach in digital policy amid growing concerns over European privacy rules and China’s restrictive data policies. The administration has highlighted participation in the Global Cross-Border Privacy Rules Forum, established in 2022 with partners including Mexico, Canada, Australia, and Japan, to support free data flows with protections.

This action follows previous U.S. efforts to influence international digital regulation, including opposition to the EU’s Digital Services Act, reflecting ongoing tensions over privacy, AI, and global tech governance.

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