The Trump administration has directed American diplomats to actively oppose other nations' efforts to impose regulations on how U.S. tech firms manage the data of foreign users. According to an internal diplomatic communication, the administration contends that data sovereignty laws pose a threat to the progress of artificial intelligence services and related technologies.

The cable, which carries the signature of U.S. Secretary of State Marco Rubio, states that such legislation would "disrupt global data flows, increase costs and cybersecurity risks, limit AI and cloud services, and expand government control in ways that can undermine civil liberties and enable censorship." Diplomats are instructed to "counter unnecessarily burdensome regulations, such as data localization mandates."

Furthermore, the directive orders officials to monitor proposals that advance data sovereignty laws and encourages them to promote the Global Cross-Border Privacy Rules Forum. This international group aims to facilitate "trusted data flows globally through international data protection and privacy certifications."

This directive emerges amid growing global scrutiny of how major technology and AI companies utilize citizen data. The European Union has been at the forefront of this movement, implementing regulations like the GDPR, the Digital Services Act, and the AI Act to limit tech companies' control over user data and ensure greater accountability.

Historically, the Trump administration has resisted such regulatory measures. This latest order reinforces that stance as the U.S. government works to strengthen the competitive position of American AI firms. The U.S. State Department has not yet responded to a request for comment on the matter.