This is basically a mutually assured destruction scenario.
The US is not going to let all US companies get fined out of retaliation, so there would be more retaliation from the US against the EU, and everyone else. In the end everyone loses, except for China, which as you mentioned is not stupid enough to play these games and decided to simply pick a lane.
China locks down the Internet and blocks foreign players (to varying levels of success). They don't reach overseas to prosecute foreign executives or fine Meta for not removing Party-critical content from Facebook. Of all the parties that could be involved in this censorship drama, China is somehow the most honest.
I know the tariffs are the bad thing of the moment (and they certainly are capricious), but I don't think you understand how much worse things can get.
You realize that the EU has had tariffs on US goods for a very long time right? I'm not saying tariffs are good, but its hypocritical to protest against behavior in which you are currently engaging.
The US is not going to let all US companies get fined out of retaliation, so there would be more retaliation from the US against the EU, and everyone else. In the end everyone loses, except for China, which as you mentioned is not stupid enough to play these games and decided to simply pick a lane.
China locks down the Internet and blocks foreign players (to varying levels of success). They don't reach overseas to prosecute foreign executives or fine Meta for not removing Party-critical content from Facebook. Of all the parties that could be involved in this censorship drama, China is somehow the most honest.