I believe cooperate espionage is also against international trade laws. You can't claim it's against the law if you have shown to completely ignore it yourself.
Many countries have national laws prohibiting cooperate espionage, but it's not necessarily prohibited by international law absent a declaration of war.
Having the ability to easily spy on us is not a free market principle.
Also, you shouldn't try to gain goodwill by bullying tactics and strawmen. How is this measure a tactic against American companies when it also explicitly bypasses the United Kingdom?
They are speaking of keeping all traffic from continental Europe to continental Europe within continental Europe, away from the NSA _and_ GCHQ.
Why? Because I actually have some chance of making the business accountable. We have things like the Privacy Act and Consumer Guarantees Act. Not only that, but there is a massively smaller barrier to entry to do things like take them to small claims court.
If a US based company sells my data or just hands it over to the NSA, I have no course of action. It's just "fuck you, read the TOS". Even if those Terms of Service literally go against established local laws.
Note that I'm not talking about content filtering or blocking international traffic. Just removing the huge reliance on international services and infrastructure, that doesn't have to mean cutting the cord.