The United States has been good at one thing lately: making enemies. The European Union now says that it has a “trade bazooka” that it can fire up if the clash with Donald Trump over Greenland continues.
The EU says it is considering revising an old €93 billion plan that would economically retaliate against Trump and the U.S. This “trade bazooka” is the most powerful trade weapon the EU has in response to Trump’s escalating tariff threats over Greenland. opting to hold the measures in reserve while pursuing a last-ditch diplomatic solution. The plan is one of retaliatory tariffs that could be enacted on imported U.S. goods if Trump imposes new duties against the EU.
An EU diplomat told Reuters the package could “automatically come back into force on February 6th” if no agreement is reached.
EU member states have so far signaled a strong unity with Denmark and Greenland, while rejecting Trump’s plan to take over the Arctic island. But the bloc won’t immediately trigger the Anti-Coercion Instrument (ACI), dubbed the “trade bazooka.”
But, EU leaders are now actively discussing the unprecedented use of the ACI. Adopted in 2023, the instrument allows the bloc to punish economic coercion with measures like restricting market access, investment, and intellectual property rights. It was designed with adversarial economic powers in mind, accoridng to a report by RT.
French President Emmanuel Macron reportedly explicitly called for its activation after branding Trump’s threats unacceptable. “He will ask, in the name of France, [for] the activation of the Anti-Coercion Instrument,” his office stated on Sunday, according to Politico. –RT
European Council President Antonio Costa has convened an extraordinary summit of EU leaders for Thursday, January 22nd. This will be to coordinate a united stance against the U.S. in support of Greenland, and to stand firm against Trump’s tariffs. The bloc is “ready to defend itself against any form of coercion,” Costa stated.
Additionally, Trump has linked his drive to take control of Greenland to his failure to win the Nobel Peace Prize, saying he no longer thought “purely of Peace” as the row over the island on Monday threatened to reignite a trade war with Europe.