Macron Urges EU 'Trade Bazooka' Against US Tariffs Over Greenland | Quick Digest
French President Emmanuel Macron is urging the European Union to activate its Anti-Coercion Instrument, dubbed the 'trade bazooka', in response to US President Donald Trump's threats of new tariffs over Greenland. Trump plans 10% tariffs from February 1, escalating to 25% by June, if Denmark refuses to sell Greenland.
Macron calls for activation of EU's never-before-used 'trade bazooka' against US tariffs.
US President Trump threatens new tariffs on European nations over Greenland sale refusal.
Tariffs to start at 10% on February 1, rising to 25% by June 1, 2026.
European leaders deem Trump's tariff threats 'unacceptable' and a risk to transatlantic ties.
EU Anti-Coercion Instrument allows punitive economic measures against third-country coercion.
The dispute casts doubt on the recently agreed EU-US trade deal.
French President Emmanuel Macron is advocating for the European Union to activate its powerful Anti-Coercion Instrument (ACI), colloquially known as the 'trade bazooka,' in direct response to US President Donald Trump's threats to impose new tariffs on several European countries. Trump has vowed to levy 10% tariffs starting February 1, 2026, on goods from nations including Denmark, France, Germany, the UK, the Netherlands, Norway, Sweden, and Finland, with plans to increase these to 25% by June 1, 2026, unless a deal is reached for the 'complete and total purchase' of Greenland by the United States. Greenland, an autonomous territory within the Kingdom of Denmark, has reiterated that it is not for sale, a stance supported by Denmark and other European nations.
Macron and other European leaders have swiftly condemned Trump's tariff threats as 'unacceptable,' warning that such actions risk undermining transatlantic relations and creating a 'dangerous downward spiral.' The EU's Anti-Coercion Instrument, which came into force on December 27, 2023, is a legal framework designed to deter and respond to economic coercion from non-EU countries. This instrument has never been utilized before, making Macron's call for its activation a significant and unprecedented move. The tool allows the EU to impose various countermeasures, including restrictions on trade in goods and services, investment, and access to its public procurement market. EU national ambassadors are scheduled to hold emergency discussions to coordinate the bloc's next steps, with the dispute also raising concerns about the validity and future of the EU-US trade deal agreed upon last year.
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