alt Hacker NewsIt is an attempt to not lose European customers that might be tempted to migrate to Europe-based solutions in the current political climate. In the event of a serious trade war (like you suggested) and/or a real war, it gives some assurances; which is smart based on the threats from the current unpredictable and authoritarian U.S. administration.
But it probably started as a way to comply with EU laws more easily, so it works on multiple levels.
How much can we trust this so-called sovereign cloud? That's a sincere question. I can't think of a more American company than Amazon, and I find it hard to believe that it could be completely independent from its American headquarters.
I really hope that Europe will get its act together rather than relying on this half-hearted solution.