"Rattled by President Donald Trump's aggression towards Greenland, the European Union is readying counter-measures against the United States. But as primarily a trading bloc of 27 nations, the EU's toolkit is mostly financial instruments, from steep tariffs on U.S. goods to the so-called "trade bazooka" touted by French President Emmanuel Macron. The term is shorthand for the bloc's Anti-Coercion Instrument, or ACI, that could sanction individuals or institutions found to be putting undue pressure on the EU."
""The crazy thing is that we could find ourselves in a situation where we use the anti-coercion mechanism for the very first time against the United States," said Macron, arguing that allied countries should be focusing instead on bringing peace to Ukraine. "Can you imagine it? It's crazy. I regret it, but it is the consequence of unnecessary aggressiveness. Still, we must all remain calm.""
"Those sanctions could inflict untold billions of dollars in costs to U.S. companies by restricting EU market access, barring them from EU public tenders, and potentially limiting foreign direct investment and curtailing the export and import of goods and services. So far, there's little backing in the 27-nation EU to use it, with the exception of France. Macron warned in Davos on Tuesday that additional tariffs by the U.S. could force the EU to use its anti-coercion mechanism for the first time."
The European Union is preparing financial counter-measures against the United States in response to U.S. aggression toward Greenland, relying on tariffs and its Anti-Coercion Instrument (ACI). The ACI can sanction individuals and institutions that exert undue pressure on the EU, restrict market access, block participation in public tenders, limit foreign direct investment, and curtail exports and imports. Such measures could impose billions of dollars in costs on U.S. companies. Support among EU member states for activating the ACI is limited, with France being a notable proponent. French President Emmanuel Macron warned that further U.S. tariffs could force the EU to deploy the mechanism.
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