Google Deepmind is headquartered in the UK and has R & D in multiple countries. How would the US ban non-nationals from using something that is largely developed outside the US by people who are not US nationals?
Mistral might be a bit behind but this might give them a lot more business.
Most of all, a lot more people will switch to Chinese models. They will catchup, soon enough.
I have not had much of a chance to try Fable, but it did not seem better than Opus for what I tried it out on. Maybe its better on bigger jobs/vibe coding type tasks which is not something I do anyway.
The US can create sanctions with legal repercussions, the same way they've done with Iran or Cuba in the past.