By adopting more protectionist economic policies, the so-called technology sovereignty package could further strain Europe’s relationship with the Trump administration after past disagreements over trade, the war in Ukraine and control of Greenland. Jamieson Greer, the U.S. trade representative, previously threatened retaliation against Europe over its digital policies.

European officials are working to carry out a trade pact with the United States, and President Trump has told them they must finish by July 4. The European Parliament is expected to vote on the package in mid-June, just ahead of that deadline.

The Computer and Communications Industry Association, an industry trade group, called the tech package “discriminatory” against companies based outside Europe.

“By excluding trusted international technology providers based on their headquarters location and organizational structure, the commission forces users to rely on a much more limited selection of digital products,” the group said in statement.

The tech package is part of a wider strategy shift to drive economic growth. Europe has been squeezed between the United States’ dominance in technology and China’s strength in manufacturing. The European Union ran a trade deficit with China of about 145 billion euros in the first three months of this year, worth about $170 billion, driven in part by an influx of Chinese-made machinery and electric vehicles.