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The language "switching off US cloud <...> could deal an economic blow" can be interpreted in two different ways: the US companies switch off access for EU companies, or EU companies switch off from the US cloud to some alternative.
Well, it could if read on its own, but when it follows the "fear of US kill switch" it's pretty clear that they're talking about a risk of the US switching off access.
On the other hand, given the agent of the first half of that sentence ("European businesses"), it is also reasonable to assume that they would be the ones "switching off" from US cloud in the second half. It is poor headline writing.
Not really, since it's talking about what they fear, not what they plan to do.
It is totally reasonable to assume that a "fear" is motivating those companies to do something. Given at least 5 people here misunderstood the headline it's pretty clearly ambiguous and thus bad. It would be really easy to fix too, e.g.
OK, I can now see the alternate interpretation although I didn't read it that way. Cheers