President Donald Trump’s latest tariff threats against several European countries over their opposition to a U.S. push to acquire Greenland have put America’s longtime allies in a difficult position: how to respond without escalating a broader transatlantic confrontation.
One option being discussed in Europe is the European Union’s Anti-Coercion Instrument—sometimes described as the bloc’s trade “bazooka.” The tool gives the EU a formal framework to answer what it views as economic pressure directed at the EU as a whole or at a member state. It entered into force in late 2023, but it has not yet been used.
French President Emmanuel Macron has floated the idea of deploying the mechanism, according to remarks attributed to his team. Valérie Hayer, a French member of the European Parliament, said on Sunday that “activation of the EU anti-coercion instrument should be explicitly considered, as it was precisely designed to address situations of economic intimidation of this nature.”
What is the EU’s “bazooka”?
Under the Anti-Coercion Instrument, the EU can choose from a range of countermeasures. These can include limiting access for U.S. products and services to European markets, as well as restricting certain rights tied to intellectual property.
The EU says the instrument is meant to deter attempts to pressure the EU—or one of its member states—“into making a particular choice by applying – or threatening to apply – measures affecting trade or investment.”
Why are European leaders discussing it now?
Trump said Saturday that the United States would impose a new 10% tariff, starting February 1, on Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, and the United Kingdom—countries that have generally been among America’s closest allies. He tied the move to a deepening dispute over Greenland, after those nations supported Greenland and Denmark and objected to U.S. ambitions for control over the territory.
He then threatened to raise the tariff to 25% on June 1, saying the measures would remain in place “until such time as a Deal is reached for the Complete and Total purchase of Greenland.”
The Trump administration has long expressed interest in Greenland, a semiautonomous Arctic territory that is part of fellow NATO member Denmark. But in recent weeks, the posture has become more confrontational, fueling anxiety in Europe and uncertainty over how far the administration might go in its stated effort to bolster U.S. national security and counter what it describes as Russian and Chinese influence. NATO officials have dismissed Trump’s claim that Beijing and Moscow pose an immediate threat.
Observers also say the White House’s thinking is tied to interest in natural resources and increased influence in the Western Hemisphere.
“We will not be pressured,” Greenlandic prime minister Jens-Frederik Nielsen said Monday. “We are not alone.”
Mixed signals on retaliation
U.K. Prime Minister Sir Keir Starmer indicated Monday that London is unlikely to impose retaliatory tariffs and said senior officials were in daily contact with the administration. The U.K. voted to leave the EU in 2016.
“Under President Trump, as under previous Presidents, we are determined to keep that relationship strong, constructive, and focused on results,” Starmer told reporters.
The eight affected countries said in a joint statement Sunday that the Trump administration risked triggering a “dangerous downward spiral.”
European politicians have separately warned that the tariffs could jeopardize a U.S. trade and tax deal with the European Union agreed last summer that is still awaiting ratification. Europe could also revive tariffs on nearly $108 billion of U.S. goods that were approved before the agreement was reached.
Kåre Aas, who served as Norway’s ambassador to the U.S. during the previous Trump administration, said European leaders have sounded firm in public—but may need to back rhetoric with credible options.
“There is a need for Europe to stand up,” he told Newsweek, adding that the “bazooka” could be one possible route. At the same time, he cautioned against steps that could prompt even harsher measures from Trump and deepen the cycle of retaliation.
