The title should be "US orders diplomats to fight _EU_ data sovereignty initiatives".
Why? Because the US is far too pussy to fight the other countries that have such initiatives - some of them reaching further than the EU's - knowing that unlike the EU those countries are definitely not going to take their shit.
I can tell you that if the US says to Japan or Korea, just to name two such examples, "stop enacting privacy/sovereignty laws that interfere with US big tech or we tariff you" , there's absolutely zero chance they're going to be listened to and the only thing it will do is make people hate the US.