I do not trust either but you have to at least agree that having some sort of mutually recognised data privacy framework is a good idea because the courts can enforce it then. Saying everything must be from EU is also slightly silly and we should instead have something similar like certification (cyber act ?) to ensure enough competition exists to avoid service degradation. IMO cryptography could be the answer to many privacy related issues for the cross border transfers.

Also these decisions related where the data is stored and which service is used are under control of each commercial org buying them. The risks are assessed at the end of the day and in case of any issues the providers change. Why would a publicly funded org store citizen data in the US is a question regardless of privacy laws though.