French President Emmanuel Macron has urged the European Union to activate its rarely discussed “anti-coercion instrument” to counter U.S. President Donald Trump’s threats of imposing tariffs on European goods. He made the proposal after Trump announced tariffs on 8 European countries for opposing his ongoing push for the U.S. to acquire Greenland.
Trump said that starting February 1, 2026, USA will be imposing a 10% tariff on exports to USA from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. He also added that the tariff will rise to 25% by June 1 unless a deal is reached for the “Complete and Total purchase” of the Danish autonomous territory. Notably, most European exports to the USA attract tariff of 15%, while there is no tariff on US export to EU, as per the EU-US trade deal signed last year. This means, the tariff for 8 European countries will go up to 25% from February, and can become 40% by June.
Speaking at a press conference in Paris earlier today, Macron described Trump’s tariff threats as “unacceptable” and an attempt at economic blackmail. He stated, “The European Union must not hesitate to deploy our anti-coercion instrument to protect our sovereignty and that of our allies. This is not just about trade; it’s about standing firm against coercion that undermines our collective decisions.” Macron emphasised that the EU’s response should be unified and swift, warning that failing to act could embolden further aggressive tactics from the U.S.
He added that the anti-coercion instrument, often referred to as the EU’s “trade bazooka,” represents a powerful tool to restore balance in transatlantic relations without escalating to broader conflict.
Macron’s comments came amid various European leaders issuing statements in support of Denmark and Greenland. Some leaders have also suggested suspending the EU-US trade deal signed last year.
The governments of Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, and the United Kingdom have issued a joint statement condemning U.S. President Donald Trump’s tariff threats over his ambitions to annex Greenland. The statement emphasises that such threats undermine transatlantic relations and risk a “dangerous downward spiral,” while reaffirming their commitment to stand united and coordinated in upholding sovereignty.
Reiterating its firm support for the principles of sovereignty and territorial integrity, the statement said, “We stand in full solidarity with the Kingdom of Denmark and the people of Greenland.” The eight nations, facing 10% American tariff for not agreeing to handing over Greenland to USA, said that they “stand ready to engage in a dialogue based on the principles of sovereignty and territorial integrity that we stand firmly behind.”
The statement added, “Tariff threats undermine transatlantic relations and risk a dangerous downward spiral. We will continue to stand united and coordinated in our response. We are committed to upholding our sovereignty.”
The Anti-Coercion Instrument
The EU’s Anti-Coercion Instrument (ACI), officially Regulation 2023/2675, is a defensive trade mechanism that entered into force on December 27, 2023. Dubbed the “trade bazooka” for its potential impact, it is designed to deter and counteract economic coercion by third countries, actions where a nation uses trade or investment measures to pressure the EU or its member states into specific policy choices, interfering with their sovereign decisions.
The instrument operates through a structured process. The European Commission first investigates potential coercion, either on its own initiative or based on reports from affected parties. If coercion is confirmed, the EU Council adopts an implementing act to formally recognise it. The Commission then engages in consultations with the coercing country to seek a resolution through negotiations, mediation, or other diplomatic means.
If unresolved, the EU can impose countermeasures, such as increased tariffs, import/export restrictions, limits on foreign direct investment, exclusion from public procurement, or restrictions on access to financial markets and intellectual property rights. These measures are tailored to be proportionate and can be lifted once the coercion ends.
The ACI has never been used before, making any activation a historic step for the EU’s trade policy.
In the context of Trump’s tariff threats, the ACI could be directly applied if the EU determines that the U.S. actions constitute economic coercion aimed at forcing a territorial concession over Greenland. The process would begin with the Commission examining the threats, potentially triggered by requests from affected member states like France or Denmark.
Upon confirmation of coercion, the EU could demand that the U.S. cease the threats. If diplomatic engagement fails, response measures might include imposing retaliatory tariffs on key U.S. exports, such as agricultural products, technology, or automobiles, to mirror the economic pain inflicted on Europe. EU can restrict U.S. companies’ access to EU public procurement contracts, which could affect billions in deals for sectors like defence, infrastructure, and technology. U.S. investments or services trade in the EU can also be restricted or curbed, such as in finance or digital sectors, to pressure the U.S. economy without broader escalation.
Applying the ACI against a major ally like the U.S. would be unprecedented and could strain NATO ties, but the situation is already unprecedented with the USA threatening to seize a NATO ally territory. EU leaders, including Commission President Ursula von der Leyen, have already signalled readiness for a unified response, and an emergency meeting of ambassadors have been convened to discuss next steps.
