What are Trump's latest tariff threats and could the EU hit back with its big bazooka'?

"Over the weekend the president said that a 10% tariff would apply on all goods shipped to the US from Denmark, Norway, Sweden, the UK, France, Germany, the Netherlands and Finland from 1 February unless they allow him to seize Greenland. Trump said that if a deal is not reached for the complete and total purchase of the Arctic island from Denmark, the rate would be increased to 25% on 1 June."

"In response, EU leaders have threatened to deploy the bloc's anti-coercion instrument (ACI) widely known as the big bazooka which was devised to give the EU more powerful tools to respond to political bullying and trade blackmail from another country. The ACI came into force in 2023 and was originally inspired by China's treatment of Lithuania, whose companies faced a barrage of paperwork and import blocks from Beijing after the Baltic nation deepened ties with Taiwan."

"The instrument allows the EU to impose sweeping trade sanctions, such as excluding the aggressor's companies from its internal market, imposing export controls or ending intellectual property protections. The countermeasures are meant to be proportionate to the economic harm inflicted, while minimising pain to Europe. In theory, the EU could take aim at anything from US tech and crypto companies, to aircraft makers or agricultural goods."

The US president announced a 10% tariff on goods shipped from Denmark, Norway, Sweden, the UK, France, Germany, the Netherlands and Finland from 1 February unless Greenland is ceded, and warned a rise to 25% on 1 June if a purchase deal is not reached. EU leaders threatened to deploy the anti-coercion instrument (ACI), known as the "big bazooka", which entered force in 2023. The ACI permits market exclusion, export controls and ending intellectual property protections as proportionate countermeasures while aiming to minimise harm to Europe. Potential targets include US tech, crypto, aircraft and agricultural sectors, although European consumers could resist measures that increase costs or restrict services.

Read at www.theguardian.com