If trade stopped, AI capability would be the last thing on the minds of administrations in both regions. The question I think is more if EU can't compete (and we know we can't) who the more reliable partner is to depend on, especially where leaning towards dependence on that partner applies pressure to a recently highly unreliable partner.
Yes we absolutely can compete. That's such a dumb defeatist attitude.
And I dont mean actual trade stopping in the case of AI. The CCP could ban the release of Open Weight models tomorrow without running afoul of a single trade treaty