India, April 30 -- Microsoft has moved to calm European fears that U.S. cloud providers could be forced to suspend operations in the region amid escalating transatlantic trade tensions.

Speaking in Brussels, Microsoft President Brad Smith acknowledged growing concerns that a future U.S. administration could order companies like Microsoft to halt cloud services for European customers, potentially as retaliation in a trade dispute. While he called such a scenario "exceedingly unlikely," Smith confirmed the concern is real and widespread across Europe.

In response, Microsoft will include a legally binding clause in its contracts with European governments and the European Commission, ensuring it would contest any foreign government directive ...