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EU Considers Anti‑Coercion Instrument After U.S. Tariff Threats Tied to Greenland

Activation requires a qualified‑majority decision by EU governments.

Overview

  • The European Parliament has paused approval of an EUU.S. trade agreement after President Donald Trump threatened new tariffs on countries that sent troops to Greenland.
  • French President Emmanuel Macron is urging use of the Anti‑Coercion Instrument and is engaging European leaders to coordinate a response, according to reports.
  • The ACI empowers the European Commission to adopt targeted, temporary countermeasures such as new tariffs or quotas, procurement bans, financial market restrictions, and limits on intellectual property protections.
  • EU officials describe the tool as a deterrent designed for proportionate action as a last resort, with dialogue and coordination sought before any countermeasures.
  • Under the ACI, the Council first determines coercion on a Commission proposal and the Commission then adopts measures, a path complicated by political hesitation from key member states and the fact the instrument has never been used since its 2023 adoption.