If the new product was produced in the US and references material from the EU, should YouTube allow the content to go public? According this and GDPR, the EU has the ability to cross territorial boundaries. So YouTube now has to ban such a work in the US even though our legal system allows it.
Essentially, YouTube will have to create a new process where by all content must go past the censors, who are probably people and not machines. Otherwise YouTube will quickly die due to death by a thousand fines. So much for a free and open exchange of ideas.