In Europe there is a “trading Bazuka” against trading tariffs on Trump

President Donald Trump is present at a bilateral meeting with the President of the European Commission Ursula von der Leyen during an annual meeting of the 50th World Economic Forum (WEF) in Devos, Switzerland, January 21, 2020.

Jonathan Ernst Reuters

It seems that the European Union considers the possibility of deploying its “tool against the whim”-characterized as a “nuclear version” to try to restrain trade disputes-like a threat of 30% of EU import tariffs.

A number of EU member states, including France and Germany, are reportedly considering using “anti-cork” measures to the US if the block cannot reach a trade transaction with US President Donald Trump, This week EU diplomats told Reuters.

Measures can see US suppliers’ access to the EU market, excluding them from participation in state tenders in the block, as well as investing exports and imports on goods and services, as well as restrictions on foreign investment in the region.

The time of deployment of what is regarded as the EU’s “trade” can also approach when Trump’s trade dispute with the block comes to the head.

As everything stands, the White House states that a 30% EU import tariff in the US on August 1, when a trade transaction is still reached. It states that the term is corrected, but it is noted that trade talks may continue after that date.

What is ACI?

The relations between the US and the EU are low after Trump has repeatedly accused the EU of unfair trading practice as it conducted a sustainable trading surplus when it comes to exchange of goods.

European Council The data shows total trade between the EU and the US, amounted to 1.68 trillion euros ($ 1.97 trillion) in 2024, but when the EU launched a goods surplus, it recorded a shortage in the US services when both the goods and services were taken into account about $ 50 billion last year.

As the last 30% of Trump’s tariffs are being emerged, the EU is considering its capabilities, including counter -US import categories, as well as its potentially formidable tool against Corcion (ACI), which was created in 2023 but never used by the EU.

ACI is designed to be a deterrent to any perceived “economic coercion” from the countries of other manufacturers who are supposed to accept “forced” practices aimed at changing EU policy, and which can harm trade and investment in the block.

Asi’s main purpose is “curb”, the European Commission, but “when the third country turns to coercion”, the tool allows the block to respond “, where it is possible through dialogue and participation, But also – as needed – through response measures

Those answers-purpose “always to cause a termination of coercion” can go beyond contraindications, with the tool also allow to increase imports and export restrictions on goods and services, as well as intellectual property rights and foreign direct investment.

Fargoers are expected to load cranes on container ships on the Burcharke’s container terminal in Hamburg, Northern Germany, June 3, 2025.

Fabian Bimer | AFP | Gets the image

In addition, counteraction measures allow the EU to impose various restrictions on access to the EU market, in particular public procurement, as well as the ability of US providers to sell food and chemicals in the block.

Using a tool can also lead to measures that affect Amazon. Microsoft. Netflix or Uber.

The European Commission notes that the EU response measures should be “proportional to the harm they resist and should be directed and temporary”, applying as long as the perception of coercion prevails.

It will also take time for the commission to act, and the process requires its investigation from possible cases of coercion before asking the state -member to confirm its conclusions. The majority (at least 15 of the 27 states) should then be qualified to advocate the ACI response measures, and even before they were put into force, the commission will hold talks with a perceived offender to try to resolve the dispute.

CNBC has demanded additional comments in the European Commission and is waiting for a response.

Trade Bazooka “Last means”

Last minute, negotiations on reaching a trade transaction from the United States are being held, and the EU is aimed at 10% of the basic tariff transaction and adaptation of key industries such as AUTO, agriculture, equipment and aerospace space.

“While the EU will have a stomach of 10% of the base tariff with liberations and quotas that protects large EU branches, a mutual rate exceeding 15% can lead to some EU revenge,” analysts in Eurosia Group say.

“Trump’s threat to triple the rate is regarded as a talks and not an EU landing zone. In this, it is said that the EU threatens to reach up to 116 billion euros, which estimate the US exports with counter-tariffs and use additional trading measures, including a powerful anti-consumable instrument (ACI).

The President of the European Commission Ursula von der Leyen comes to a special European Council to discuss the permanent support of Ukraine and European defense at EU headquarters in Brussels on March 6, 2025.

Nicholas Tatku | AFP | Gets the image

Using ACI would be something of a “trading base”, said Mujtaba Rahman, Emre Peker and Clayton Allen, and the latest tool.

“While France, Spain and some other EU members will advocate a strong revenge against Trump’s tariffs, the (European) commission, probably initially focus on hitting US goods with larger tariffs,” they said.

However, the escalation spiral, which leads up to 10% scenario of the “trade war” of Eurasia, will push Brussels to deploy escalation measures, such as “export control/duties, public procurement and/or penalties for export services in the US, using the ACI trading Bazuka.

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