From the article: (the EU parliament) "takes the view that the current #PrivacyShield arrangement does not provide the adequate level of protection", "calls therefore on the Commission to suspend the Privacy Shield until the US authorities comply" https://twitter.com/bendrath/status/1014832868969910273?ref_...
My personal opinion is that this isn't tradewar politicing by Europe, it's the result of a genuine interest in citizen's privacy, but I can see why it could be taken as such.
It's not just the administration. Every time the EU has levied fines against Google a lot of Americans on HN claim that the EU is doing it because they're jealous of how successful American businesses are.
The US generally doesn't give a damn and will usually do what it wants anyway.
In the case of Karl and Walter LaGrand there was a clear violation of the Vienna Convention, a binding verdict by the International Court of Justice, a sympathetic US President, but the Governor of Arizona didn‘t care, and America just said „too bad, we signed this convention, but if a state doesn‘t want to comply, what can we do?“. And SCOTUS confirmed that stance.
That really ought to be taken into account in the treaty negotiations. If a company signs an agreement the company can't legally comply with, that tends to have the effect of nullifying the agreement more than forcing the company to change. (Tends to. Generally.)