What is the EU's anti-coercion 'bazooka' it could use against US?

"Trump stunned Europe on Saturday when he vowed to slap EU members Denmark, Finland, France, Germany, the Netherlands, and Sweden -- and non-members Britain and Norway -- with levies of up to 25 percent unless the Danish territory is ceded to the United States. French President Emmanuel Macron has raised the prospect of hitting back with the EU's trade weapon, that was established in 2023 but has never been activated."

"Referred to as a "bazooka" or "nuclear" option, the instrument is intended to deter economic coercion against any of the EU's 27 member states. The EU defines coercion as a third country "applying - or threatening to apply - measures affecting trade or investment", thereby interfering "with the legitimate sovereign choices" of the EU and member states. The armoury allows the EU to take measures such as import and export restrictions on goods and services in its single market of 450 million people."

"Both the commission and member states have the right to seek its activation, but it would then need the green light of at least 55 percent of the member countries voting in favour, representing 65 percent of the bloc's population. A major target could be American tech giants since the United States has a services surplus with the EU. Brussels previously drew up a list of US services to potentially target."

Trump threatened to impose up to 25 percent levies on several EU members and non-members unless a Danish territory is ceded to the United States. French President Emmanuel Macron and MEP Valerie Hayer proposed responding with the EU's 2023 trade instrument. The instrument aims to deter economic coercion by allowing import and export restrictions and by limiting foreign companies' access to public procurement within the EU single market of 450 million people. Activation can be requested by the commission or member states and requires approval by at least 55 percent of countries representing 65 percent of the EU population. Potential targets include American tech firms and US services.

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