I don't know why the EU wants to trust the USA so bad, it's clearly unwise. It makes sense, because banning EU companies from using AWS/GCP/etc. would bankrupt the EU into a recession, but the way they're going about these things is very annoying.
That said, if the USA would actually keep its promises and adopt legislation that solves the reasons why the EU cannot give out a decent competency decision, the problem would go away entirely.
The Biden administration set up a precarious body within the government to resolve the issue rather than go through the normal lawmaking process, probably because it wouldn't go through.