Why would France, Germany, or any other country should allow their citizens in their sovereign country to be treated like that? And what’s next? “If you want to do business in country X then give us all the user data for country Y?
Countries are free to set whatever conditions they like for allowing a company access to its market.
But sure, countries can sign trade treaties that give each other mutually-beneficial things. Some of those things could be what is and isn't allowed to require companies to do in order to operate within the other country's borders.
But in absence of something like that... that's just life. I guess the US could act like a baby and slap tariffs on goods from the UK, but I'm not sure what the upside would be for the US here.
So this is a charade while status is quo, I guess.