Europe Weighs Anti-Coercion Measures in Response to Trump’s Trade Threats

European countries have begun discussing retaliatory tariffs and expanded economic sanctions against the United States following a sharp deterioration in relations with the administration of Donald Trump.

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Port of Antwerp, terminal

The escalation stems from US threats to impose new export duties and the political conflict surrounding Greenland, intensifying transatlantic tensions and casting doubt on the prospects for further trade and economic dialogue between the two sides.

Trump Announces US Tariffs on European Goods

Donald Trump announced that eight European countries would face increased American tariffs, starting at 10 percent from February 1 and potentially rising to 25 percent by June if no agreement is reached on the transfer of Greenland to US ownership. This announcement sparked sharp criticism in Europe.

The proposed measures target Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. These new duties would be additional to existing tariffs, which currently stand at 10 percent for the UK and 15 percent for EU countries, potentially raising the overall burden on European exporters.

EU Considers Anti-Coercion Measures

In response, regional diplomats held an emergency meeting in Brussels to develop a unified approach. The goal was to determine acceptable measures against the US without immediately severing economic ties.

Sources indicate that France took the hardest stance, advocating maximum leverage through the EU's Anti-Coercion Instrument (ACI). This mechanism, designed to counter economic pressure from third countries, allows the EU to restrict US suppliers' access to its markets, exclude American companies from public tenders, and impose restrictions on imports, exports, and foreign investment.

Often referred to as the EU's "nuclear option” or "big bazooka,” the ACI has never been applied in practice. Its effectiveness and consequences remain theoretical, which restrains some EU leaders from immediate implementation.

Balancing Sanctions With Dialogue

Despite firm rhetoric, EU leadership has expressed willingness to engage in dialogue with the US. Contacts are planned in the coming days to attempt resolution of disagreements over Greenland, as European authorities fear that a swift move to sanctions could trigger an uncontrolled trade war, harming both economies amid an already unstable global environment.

Financial Times reports that the EU is simultaneously considering tariffs on US goods totaling €93 billion (equivalent to €108 billion), which could serve as an intermediate pressure measure. While less drastic than deploying the ACI, it could still affect key US export sectors. Brussels is evaluating a combination of tariff actions and political signaling.

Meanwhile, Reuters notes a potential pause in the European Parliament's work on the EU-US trade agreement concluded last July, which was intended to reduce mutual trade barriers. Voting on lifting certain import tariffs on US goods, scheduled for January 26-27, may now be postponed indefinitely.

The current situation reflects a deeper crisis in transatlantic relations, where trade disputes increasingly serve as tools of political leverage. The Greenland issue has become a symbol of this approach, as economic measures are deployed to achieve geopolitical objectives. Implementing the ACI would set a precedent for the EU, demonstrating its readiness to defend its interests by forceful means. For the US, Europe's response could lead to market losses and further isolationist tendencies, potentially accelerating the fragmentation of global trade in the long term.