Trade bazooka: the instrument of coercion that the EU agitates so that Trump does not impose tariffs

Trade bazooka: the instrument of coercion that the EU agitates so that Trump does not impose tariffs

The European Union (EU). He knows that it guarantees him defensive protection and technological help, he knows that antagonizing Washington means that the Ukrainian front will suffer, but patience (or servitude) also has a limit.

Therefore, today it seems that Brussels would be closer than ever to initiating the procedures for the activation of its community anti-coercion instrument against its North American ally. The announcement by the president of the United States, to charge commercially against the eight European and NATO countries that to defend it from those of the tycoon (Denmark, Finland, France, Germany, the Netherlands and Sweden, plus the United Kingdom and Norway), has led us to think, now, about acting.

Trump announced on Saturday that he was going to impose, starting February 1, a 10% tariff on all products from European countries that have sent troops to Greenland, adding that he will raise the tariffs to 25% in June and that these will remain in force until an agreement is closed “for the complete and complete purchase of Greenland” by Washington. So something has to be done.

France is the leading proponent of implementing this EU policy – also known as a “trade bazooka” – in response to Trump’s threats. Since the end of 2023, Europe has had specific legislation to deter and respond to economic coercion that third countries may exert, and which ultimately provides for the possibility of applying restrictive countermeasures in cases such as the one at hand.

The EU defines coercion as the case in which a third country “applies – or threatens to apply – measures that affect trade or investment”, thus interfering “in the legitimate sovereign decisions” of the EU and the Member States.

“The United States is making a miscalculation that is not only dangerous but could be painful,” Hayer of the group Renew said in a statement. “The anti-coercion instrument is our economic nuclear weapon,” he said. This is the liberal parliamentary group, to which Renacimiento, the party of French President Emmanuel Macron, belongs.

The latest aggression by the US president against his main European allies has reopened the debate and with force. “In this case, a trade instrument is being used as a means of political pressure. I therefore urge the European Commission to immediately initiate the anti-coercion procedure,” further stated , President of the Trade Committee of the European Parliament.

“Despite Macron’s pronouncements in favor of the use of the ICA and the heated comments from the leaders of the political groups in the European Parliament, there is currently no majority in EU capitals in favor of implementing the mechanism, according to an EU official,” the newspaper states this morning. . The strategy would be to wait and see what Trump does, rather than relying solely on his explosive post on Truth Social, words for now.

If the American president carries out his threat of sanctions, on February 1, we will have passed the screen and something will have to be done. But the truth is that little should be expected before the extraordinary meeting scheduled for this January 22, a call made by the president of the European Council, António Costa. Important decisions, if they are made, will probably be made in early February, the same media estimates.

Ursula Von der Leyen and Donald Trump, on July 27, 2025 in Scotland, announcing the tariff agreement between the EU and the US.Andrew Harnik / Getty

What does it consist of?

  • He bazooka It allows the EU to adopt measures such as restrictions on the import and export of goods and services in its single market of 450 million people.
  • It also gives Brussels the power to limit American companies’ access to public contracts in Europe.
  • Last year the EU threatened to use this weapon during difficult trade negotiations with Trump to avoid high tariffs, but both sides reached an agreement.
  • An important target could be the American technology giants, since the US has a surplus in services with the EU.
  • Brussels had previously drawn up a list of American services that could be targeted: it was known in July and had a value of 93 billion euros. The list included an initial package of measures adopted in early April and targets products such as airplanes, cars and auto parts, as well as orange juice, poultry, soybeans, steel or aluminum and yachts. Bourbon whiskey was also included on the list, despite intense pressure from France and Ireland, which fear US retaliation on alcohol. , to prioritize “dialogue,” the Commission said then.

“The ICA is created for extraordinary situations; we have not reached that point yet,” said the president of the European Commission, the German one, last July, when tariffs were still being negotiated with the White House. It was not implemented and what came about was an agreement with which the US gained and Europe won.

What motivated the creation of the instrument was Lithuania’s accusation against China of prohibiting its exports because Vilnius allowed the opening of exports in its territory in 2021.

How it works

Both the Commission and the Member States have the right to request its activation, but then it would need the green light from at least 55% of the member countries that vote in favor, which represents 65% of the bloc’s population, reminds the agency.

Even if Brussels activated the weapon, it could be months before action is taken, according to the rules.

What is the process like?

  • Firstly, the European Commission has four months to investigate the third country accused of harmful trade policies; Member States would then have eight to ten weeks to endorse any proposed action.
  • Only then would the commission have the green light to prepare measures that would come into force within six months. The EU states that the deadline is indicative.
  • But even the mere act of launching an investigation under this instrument would send a powerful message that Brussels is willing to fight its important ally.

“What it is made for”

“This is the second time during (Trump’s) second term that there are very, very solid reasons to apply this (anti-coercion) instrument. It is exactly what it is made for,” David Kleinmann, a researcher in Brussels at the ODI Global think tank, told the agency.

For Kleinmann, the tariff tensions between the EU and the US last year did not exceed “the pain threshold” of Brussels, which had “very little interest in entering into a trade war.”

However, in the last 48 hours that threshold has been exceeded “far and away”, he added, and considered that the EU has a wide range of responses on the table.

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