According to sources, EU member states will refrain from immediate retaliatory action in the interim, as they prefer to prioritize communication and diplomacy with the US. A powerful tool adopted in 2023, the “bazooka” or anti-coercion instrument (ACI) enables the EU to punish hostile nations for “economic blackmail” by restricting trade licenses and denying them access to the single market. The bloc has not yet used the instrument.
European Union diplomats say the European Commission has outlined several possible responses to President Donald Trump’s latest tariff threats, including the use of the bloc’s anti-coercion instrument, though no formal decision has yet been taken.
According to a diplomatic source, EU ambassadors discussed the options during recent talks but did not vote in favour of or against any specific measure. The source added that the EU could revive a €93-billion retaliation package targeting US products if Trump proceeds with plans to impose an additional 10% tariff on imports from eight European countries, including Denmark, Germany and France, from 1 February. A final decision on whether to reinstate the retaliatory tariffs, which were suspended last year, is expected after the US-imposed deadline.
The €93-billion package was drawn up in 2025 amid uncertainty over the future of EU-US trade relations. It includes retaliatory tariffs of up to 30% on a wide range of American goods, from cars to poultry.
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