The initiative, led by France, to activate the so-called 'Anti-Coercion Instrument' (ACI) in the EU has already gained the support of more than six EU member state governments.
According to sources cited by Bloomberg, on France's National Day, the EU discussed this issue at a trade ministers meeting. Several member states took a more cautious stance, and other countries have yet to make their positions clear.
In any case, the European Commission, which is responsible for managing EU trade affairs, pointed out that since EU-US negotiations are still ongoing, using this tool now would be premature.
European Commission President Ursula von der Leyen stated, “The ACI was created for exceptional circumstances,” and “we have not reached that point yet.”
This tool gives officials broad powers to take retaliatory actions against the EU's trading partners. These measures could include imposing new taxes on US tech giants, implementing targeted restrictions on US investments in the EU, restricting access to certain segments of the EU market, or limiting US companies' participation in European public contract bids.
If the EU uses the ACI for the first time in its history, it could trigger a wider transatlantic trade war. Trump has previously warned that retaliatory actions targeting US interests would only lead to harsher US responses.
French European Affairs Minister Jean-Noël Barrot recently told the media that the EU’s response should include the option of using this tool.
He said: “In these negotiations, we must show strength, demonstrate power, unity, and determination.”
He noted that in addition to the European Commission’s announced countermeasures against US trade worth nearly 100 billion euros, “we can go even further.”