Donald Trump’s administration has warned European businesses they could face ‘devastating’ retaliation if Brussels pushes ahead with satellite-spectrum plans that could restrict American rivals, turning a battle over connectivity into another explosive flashpoint in transatlantic relations.

Andrew Puzder, the US ambassador to the European Union, issued the warning as Europe seeks greater control over critical technology infrastructure. The timing is striking: on 19 October, four of the continent’s biggest telecom operators announced they were exploring a joint bid for satellite spectrum, signalling a fresh push to strengthen Europe’s position in a market dominated by Elon Musk’s SpaceX and its Starlink network.

US Ambassador Issues Stark Warning
Speaking to the Financial Times, Puzder warned European companies they should be wary of possible retaliation if the EU advances its proposed policy.

‘They should be wary that it could happen and it would be very devastating for those companies,’ he said, pointing to the scale of the US market.

His remarks raise the prospect of a commercial backlash, although he did not announce specific tariffs, sanctions or other punitive measures.

Puzder argued that Europe should not make American companies less competitive in an attempt to strengthen domestic rivals. He also questioned whether the EU’s Digital Markets Act was being enforced to improve competition or to generate revenue through fines on US technology firms.

The dispute highlights a widening divide between Washington’s defence of American businesses and Brussels’ drive to reduce reliance on foreign technology.

What the EU’s Satellite Plan Means for Starlink
At the centre of the confrontation is a European Commission proposal adopted on 27 May 2026 to establish a new EU-level selection process for mobile satellite services using the harmonised 2 GHz frequency band.

The current authorisations expire in May 2027. The proposed framework would determine how the spectrum is allocated for future services, including direct-to-device technology that allows compatible smartphones to connect to satellites.

Read More: Trump administration threatens Europe with ‘devastating’ US retaliation over Starlink restrictions