EU Considers 'Big Bazooka' Trade Weapon Against Trump's Greenland Tariff Threats
World
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Moneycontrol•20-01-2026, 17:28
EU Considers 'Big Bazooka' Trade Weapon Against Trump's Greenland Tariff Threats
- •US President Donald Trump's tariff threats over Greenland have prompted the EU to consider activating its powerful Anti-Coercion Instrument (ACI).
- •The ACI, informally known as the 'big bazooka,' is designed to retaliate against countries using economic pressure for political concessions.
- •It allows the EU to impose countermeasures beyond tariffs, such as restricting US companies' access to the EU market or suspending intellectual property protections.
- •The ACI was developed after China's trade barriers against Lithuania for deepening ties with Taiwan, coming into force on December 27, 2023.
- •While some EU officials prefer existing tariffs, France and Germany strongly support using the ACI, viewing Trump's actions as an unprecedented economic coercion.
Why It Matters: The EU is weighing its most powerful trade weapon, the ACI, to counter Trump's tariff threats over Greenland.
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