Microsoft president urges swift resolution to US-EU trade tensions

Brad Smith calls for cooperation amid Trump tariffs, emphasizing tech ties and Microsoft’s AI and data commitments in Europe.

The Microsoft logo appears on a screen during a speech by the company’s vice-chair and president on "digital resilience in a time of geopolitical volatility" at the Atlantic Council in Brussels on April 30, 2025. Photo by Nicolas Tucat/AFP

By Anna Fadiah and Hayu Andini

Microsoft president Brad Smith has called for an urgent resolution to the escalating US-EU trade tensions, cautioning that prolonged disputes could disrupt a transatlantic relationship vital to the global economy. Speaking in Brussels during a visit aimed at reinforcing Microsoft’s European presence, Smith emphasized the importance of dialogue and cooperation between the United States and the European Union amid renewed trade hostilities sparked by the return of President Donald Trump to the White House.

“There are real issues that deserve discussion. We hope that there will be real resolutions that bring people together on both sides of the Atlantic, and the sooner, the better,” Smith told AFP. His comments mark a rare direct appeal from a major U.S. tech executive during a time of renewed volatility in trade policy and increasing European skepticism of American Big Tech.

Trump’s tariff escalation and Microsoft’s measured response

President Trump’s reinstatement in January has led to a swift reactivation of tariffs on both allies and adversaries, with steel, aluminum, and automotive imports from the EU subject to punitive duties of up to 25 percent. A sweeping 20-percent tariff on European goods, introduced in April, only exacerbated the situation, prompting a temporary 90-day pause that many in Brussels see as insufficient.

Now, U.S. and EU negotiators are engaged in high-stakes discussions to avoid the unraveling of a trade relationship worth more than 1.6 trillion euros ($1.8 trillion) annually. Amid these talks, Brad Smith — often considered a diplomatic voice in the American corporate world — opted for a tone of reconciliation over confrontation.

“We're all going to need to see how the trade discussions unfold,” Smith said, noting that Microsoft maintains strong relationships with stakeholders on both sides. Although he refrained from directly criticizing Trump’s approach, he emphasized that preserving dialogue is critical to repairing trust.

European unease over American tech giants’ alignment with Trump

Smith’s comments come amid growing unease in Europe about the apparent closeness between U.S. Big Tech leaders and President Trump. High-profile meetings between Trump and executives such as Meta’s Mark Zuckerberg have raised alarms in Brussels over the implications for European digital sovereignty and access to services.

However, Smith sought to separate Microsoft’s mission from the political fray, presenting the company as a bridge between the two powers. “Microsoft has very important relationships with both the United States and Europe,” he said, avoiding any overt political alignment while reinforcing the company's long-standing presence in the region.

Reinforcing Microsoft’s European commitments

During his Brussels visit, Smith reaffirmed Microsoft’s pledge to protect European data in compliance with local regulations and court rulings, addressing one of the key concerns that have fueled EU efforts to regulate American tech firms more strictly.

Microsoft is investing heavily in European operations, especially in cloud infrastructure and artificial intelligence. Smith pointed out that AI development is not only a technological imperative but also an opportunity to deepen collaboration with European institutions and innovators.

“One area in which Microsoft has poured tens of billions of dollars is artificial intelligence, which we seek to develop in partnership with European players,” he said.

Environmental impact and future-facing technology

Despite the forward momentum in AI, environmental concerns remain. Smith acknowledged the growing criticism over the ecological cost of training and operating large AI models. In response, he reiterated Microsoft’s ambitious climate goals.

“We're committed to reducing our carbon emissions, to being carbon negative by 2030,” Smith said. He added that the company believes AI can play a crucial role in addressing the climate crisis. “It will lead to, we think, the kinds of breakthroughs the world needs.”

This focus on sustainability is part of Microsoft’s strategy to align its technological ambitions with European values — a move that could help the company maintain goodwill amid regulatory scrutiny.

A crossroads for the US-EU relationship

The visit comes at a pivotal moment for transatlantic relations. While EU officials increasingly call for strategic autonomy and reduced reliance on American technologies, Smith argues that the strength of the relationship between the U.S. and Europe goes beyond current disputes.

“There are issues that might divide us,” he admitted, “but the ties that bind us are so much bigger. Let’s address those issues head-on and remain committed to our shared values and cooperation.”

He expressed optimism about the future of U.S.-EU trade and tech relations, but stressed that meaningful progress must begin with honest, constructive dialogue.

“I don’t think we can recommit across the Atlantic until we work through the issues that are currently on the trade table, so to speak. But I believe in a future,” Smith said, underscoring a vision of cooperation over confrontation.

Microsoft’s balancing act

Brad Smith’s role as Microsoft president often places him at the intersection of policy, law, and international relations. His diplomacy-first approach contrasts with more combative voices in the tech world, and it reflects Microsoft’s long-term strategy of engagement rather than defiance.

By investing in European data centers, supporting digital skills training, and aligning with EU regulations on privacy and environmental sustainability, Microsoft is positioning itself as a reliable partner in a region wary of American dominance.

Yet the challenge remains — reconciling two continents that are increasingly divergent in their approach to technology, trade, and governance. Whether Smith’s bridge-building will succeed depends not only on Microsoft’s goodwill but also on the outcomes of the ongoing trade negotiations between Brussels and Washington.

As trade tensions continue to simmer, the next few months could prove decisive for the future of U.S.-EU relations — and for the role that major American technology firms will play in shaping it.

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