I mean it’s not just that, the current administration have destroyed a bunch of the US’s oldest and most important alliances…
I’m not in Europe but in another allied country, the feeling amongst people here is that the US is not able to be trusted as a partner anymore.
And with ways the Government can apply pressure to US companies (CLOUD Act etc.) that extends to IS companies too.
It's not the current administration that started this process. The US has for decades gone against the Europeans, step after step, asserting policies that only favor US companies. In the past however, the US administrations sugarcoated this fact with the language of cooperation. The current US government is now laying bare the fact that they're creating a political system where all technology and resources are controlled by the US and their "allies" are mere observers that should not do anything about it.
Curious where you are. I am in Canada and it's certainly mixed feelings but I think there are plenty of Canadians that understand that despite the current craziness we're in this together for the long term. Similarly in the US there are plenty that understand this.
In relation to Europe vs. the US. Even before the current administration Europe has been at odds with American companies: "The European Union Renews Its Offensive Against US Technology Firms" (2022) - https://www.piie.com/sites/default/files/documents/pb22-2.pd...
The framing that this started now with the current administration is not correct. The current administration certainly heated things up so to speak and brought things to the surface but the tension has been there for a long while. Europe is not capable of competing with US tech in general for various structural reasons. Europeans tend to argue this is because of US power but we see countries like China and India succeeding where Europe fails.
The more interesting question is whether there is a large enough lasting change in the US that takes away its structural advantages. I don't think this is the case. If you look at AI the hub of world economic activity and innovation is still in the US including startups and incumbents. s/AI/anything/ . China is certainly trying, and arguably succeeding, in taking some of that but it's still not at the same level. Europe is not even a player.