German Chancellor Friedrich Merz warned that Europe relies excessively on U.S. software and tech infrastructure, pressing for increased digital sovereignty and investments in domestic data centers. He criticized recent U.S. shifts in policy rules, suggesting that technology dependencies now factor heavily into global power dynamics. The comments signal a broader push within Europe to build its own tech ecosystem.

The U.S. is reportedly crafting a policy requiring semiconductor firms to match their imported chip volumes with domestic production or face new tariffs. The measure aims to reduce foreign dependency and boost U.S. manufacturing. Exemptions may apply, but firms unable to meet the ratio could see punitive duties. The White House and Commerce Department have yet to confirm the policy.