EU mulls using “trade bazooka” against U.S.

Calls are growing for the EU to deploy its ultimate Anti-Coercion Instrument (ACI) – dubbed the “trade bazooka” – in response to President Trump’s threats to impose tariffs over Greenland

President Trump threatens 10% tariff to goods imported from eight European countries that oppose his plan to take over Greenland

WHAT IS ACI?
Adopted in 2023 as deterrent to protect EU member states from economic coercion by third countries

WHAT ACI ALLOWS
Limiting access to public tenders, restricting trade in services – such as tech platforms –, imposing export controls, or suspending intellectual property protections

ACI IMPLEMENTATION TIMELINE

Economic coercion raised by member state or EU institution

European Commission examines coercion – up to 4 months

Member states have another eight to 10 weeks to endorse – or not – decision. Countries need to agree by qualified majority vote, which means support of 55% of EU states

Response measures adopted within 6 months of determination

Firing the trade bazooka has never been done before, so no one knows how effective it might be

U.S. IMPORTS FROM NATIONS TARGETED ($bn, 2024)

Combined value
$365bn
– equivalent to
half of EU exports
to U.S.
Germany
$160bn
UK
$68bn
France
$60bn
Netherlands
Sweden
Denmark
Finland
Norway
34
18
10
8
7

Sources: AP, Reuters, European Commission, U.S. Census Bureau, Euronews
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