The concern isn't new. I've been involved in several UK government projects that considered moving to AWS.

Each time the discussion on moving to a US based provider was a big consideration, particularly the use of managed services that involve data was a hot topic. Part of the risk assessment was considering what the consequences might be if the US government became a bad actor. It was seen as high impact but extremely low probability. Starting to look like we got that part of the assessment wrong.

I think it will take time for the impetus to move to US clouds providers to slow and reverse but I'm not sure I'd be surprised if it does happen now.