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European Union warns of harsh response to US tariff escalation

European Union warns of harsh response to US tariff escalation

According to Reuters, EU leaders are prepared to apply broad anti-coercion measures against the United States. That is how far the confrontation between America and Europe has gone. Sparks are flying on both sides of the Atlantic.
In the current situation, most EU member states agree on activating the Anti-Coercion Instrument (ACI) against the United States. The reason is President Donald Trump’s aggressive tariff policy.
The article titled "EU's 'nuclear option' of moves against Trump tariff threat" emphasizes that Brussels is ready to take such steps if a trade agreement with the White House cannot be reached. In that case, Europe would be forced to invoke the ACI as a last resort in a prolonged dispute.
It is worth noting that this instrument was introduced at the end of 2023 but has never been used, as many consider it the nuclear option. Most experts view the ACI as a deterrent meant only for extreme circumstances. Has that moment arrived?
The ACI allows EU leaders to adopt retaliatory measures against third countries that exert economic pressure on bloc members to alter their policies. The scope of this tool is broad and not limited to the imposition of counter-tariffs on American exports. For example, in public tenders worth a total of €2 trillion, bids related to construction or defense procurement may be excluded if the contract includes a certain percentage of US-origin goods or services.
Additionally, direct foreign investment from the US and protection of intellectual property rights could also face restrictions. As experts conclude, the ACI’s power is substantial, and its range of application is extensive.

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