From a policy perspective, the states HAS to say this. Wisdom of the particular policy aside, once a country makes a really bold demand - "do X or we'll do Y"

From a policy perspective, the states HAS to say this. Wisdom of the particular policy aside, once a country makes a really bold demand - "do X or we'll do Y" - they can't back down without losing a tremendous amount of credibility. If you don't follow through on your threats, they're meaningless; if your threats aren't meaningful, only action is. Action is more expensive, so it costs you more to accomplish a goal, so you can accomplish less. I happen to think this particular policy is unwise (dude, you need allies, and you think Europe won't help you regulate tech? C'mon), but the US has committed. Barring judicial intervention, it would be more unwise to back down now.