European Leaders Are Quietly Preparing to Use Their 'Trade Bazooka' Against the US: Report
Arctic ice is not as cold as the relationship between the European Union and the United States, as the EU considers rolling out an untested economic “bazooka” against the United States.
The root of the friction is the intense American push to acquire Greenland, which has resulted in an equally strong push against President Trump’s plan from European nations.
Trump countered the European opposition to his plans by saying that he would slap higher tariffs on nations that are fighting the hardest against him, which includes Britain, Denmark, Finland, France, Germany, the Netherlands, Norway, and Sweden.
Now, EU leaders will meet Thursday to discuss a response that could include rolling out what is formally called an Anti-Coercion Instrument, which has acquired the nickname of “trade bazooka,” according to Politico.
As noted by France 24, the “trade bazooka” is designed to push back when anyone tries to force EU nations into doing what they do not wish to do.
If approved, the Anti-Coercion Instrument would impose import and export restrictions that would target American companies. Further, U.S. firms would not be able to bid on some government contracts from EU nations.
Politico noted that approval of 15 nations is required, adding that France and Germany appear to be the most ready to invoke the punishment.
“We have a set of instruments at our disposal, and we agree that we do not want to use them. But if we have to use them, then we will,” German Chancellor Friedrich Merz said Monday. French President Emmanuel Macron has also shown support for taking action.
France 24 noted that the process to punish the U.S. could take some time, with the EU’s rules requiring up to four months to investigate claims of coercion and several weeks more to decide on taking action.
However, European Parliament members took action Wednesday to block a proposed U.S.-European trade deal because of Trump’s public comments on tariffs, according to CNN.
A preliminary deal was reached in July that put parts of the deal in place, leaving the impact of the Wednesday action uncertain.
Bernd Lange, chair of Parliament’s trade committee, said Trump “wants to have Greenland as part of the United States as quick as possible, and he wants to have a table where we could discuss about the price he wants to buy.”
Lange said the tariff threats violate the agreements.
“Until the threats are over, so there will be no possibility for compromise,” Lange said.
In a speech Wednesday at the World Economic Forum in Davos, Switzerland, Trump made clear he is not backing off his intention to acquire Greenland, according to ABC News.
“It’s the United States alone that can protect this giant, massive land, this giant piece of ice, develop it and improve it and make it so that it’s good for Europe and safe for Europe and good for us,” Trump said.
“It’s very important that we use that for national and international security. That can create a power that will make it impossible for the bad guys to do anything against the perceived good ones,” Trump said.
“We want a piece of ice for world protection, and they won’t give it. We’ve never asked for anything else … So, they have a choice. You can say yes and we will be very appreciative, or you can say no and we will remember,” Trump said.
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