The model in the US is nominally to have few regulations limited to things like enforcing contracts and antitrust laws and pricing major externalities, then leave the rest of it to free market competition. That isn't compatible with a model where regulators are trying to run the economy, because then the regulators get captured by industry and thwart rather than protect competition, and competition can't save you from needing complicated rules if it is not present. And those kinds of complex competition-destroying regulations are showing up everywhere, including in the US.

Conversely, the model in the EU is to not care a lot about small businesses and just regulate the large ones. But that model isn't really compatible with free trade. You can't impose expensive regulations on domestic companies and then put them into competition with countries that don't do that and expect them to succeed. But people want to have their cake and eat it too. They want the expensive regulations but not the correspondingly higher prices, and then the stuff they buy gets made in China where the rules don't exist (or exist on paper but the government waives them in order to capture the market). If you want to have the rules without destroying domestic industry then you have to impose them on the manufacturers of imported products too. Which would actually help the US increase competition, because the regulations would then shackle global megacorps that want to sell into the EU but not smaller domestic US companies that don't. But then foreign-produced stuff sold in the EU would cost as much as domestically-produced stuff -- a boon to local industry but higher prices on local consumers, and apparently they're not willing to suffer the latter.