Device allows the bloc to take measures such as restrictions on the import and export of goods and services in its single market of 450 million inhabitants
The calls for it to activate its powerful “anti-coercive instrument” in response to the American president’s threats to impose tariffs in his dispute over , are increasingly louder.
Trump surprised Europe last Saturday when he promised to impose tariffs of up to 25% on Denmark, Finland, France, Germany, the Netherlands and Sweden, as well as the United Kingdom and Norway, non-EU countries, unless autonomous Danish territory is ceded to the United States.
The French president, , presented the possibility of counterattacking with the EU’s commercial weapon, known as the “bazooka” or “nuclear” option, created in 2023 but never activated. The leader of the liberal Renew group in the European Parliament, Valerie Hayer, also called for this instrument to be used.
The tool aims to deter economic coercion against any of the 27 EU member states. The EU defines coercion as the “application or threat of application by a third country of measures that affect trade or investment”, thus interfering “in the legitimate sovereign decisions” of the bloc and member states.
What does this instrument do?
This “battery ram” allows the EU to take measures such as restrictions on the import and export of goods and services in its single market of 450 million inhabitants. It also grants Brussels the power to limit American companies’ access to public procurement contracts in Europe. Last year, the EU threatened to use this weapon during difficult negotiations with Trump to avoid high tariffs, but both parties reached an agreement.
One of the main targets could be American technology giants, as the United States has a services surplus with the EU. Brussels previously drew up a list of American services that could be targeted.
The creation of the instrument occurred after Lithuania accused China of banning its exports because Vilnius allowed the opening of a Taiwanese diplomatic representation on its territory in 2021.
How does it work?
Both the European Commission and the Member States have the right to request its activation, but this would require the approval of at least 55% of the countries that vote in favor, which represents 65% of the bloc’s population.
Even if Brussels activates the device, months could pass before action is taken, according to the rules.
Firstly, the Commission has four months to investigate the third country accused of harmful trade policies; then member states would have between eight and ten weeks to support any proposed action. Only then would the EU’s executive body have the green light to prepare measures, which would come into force within a provisional period of six months.
But simply initiating an investigation under this instrument would send a powerful message that Brussels is willing to strike back at its important ally.
“The United States is making a miscalculation that is not only dangerous, but could be painful,” said Hayer, from the Renew group, in a statement. “The anti-coercion instrument is our economic nuclear weapon,” he said.
*With information from AFP
