Philenews

EU Moves Closer to Activating 'Trade Bazooka' Against the US

Published January 21, 2026, 08:17
EU Moves Closer to Activating 'Trade Bazooka' Against the US

The European Union is taking a step closer to activating a powerful trade weapon, the so-called 'trade bazooka,' in response to Donald Trump's threats of tariffs against eight EU countries opposing his pursuit of Greenland. Germany is aligning with France, urging the European Commission to consider activating the Anti-Coercion Instrument (ACI). The change in Berlin's stance is considered crucial, bringing the EU closer to a dynamic response. The issue is expected to dominate the upcoming emergency summit of European leaders in Brussels. The EU already has a package of retaliatory measures worth 93 billion euros, but the ACI is considered more potent, allowing for the imposition of tariffs, restrictions on exports of strategic products, or even the exclusion of American companies from public tenders. Activating the 'trade bazooka' requires the support of at least 15 member states. Attention now turns to Italy and Poland, with Rome appearing more hesitant. However, the alignment of France and Germany increases pressure for a unified stance. The EU appears more willing to accept the economic cost of activating this weapon. The situation worsened after Trump announced a 10% tariff on countries in NATO opposing his moves for Greenland, as well as threats of tariffs of up to 200% on French wines and champagne. European leaders are trying to de-escalate tensions, while diplomats fear that such a council for global issues could harm the work of the United Nations.