Jens Asbjørn Bøgen
The economic weapon have never been used before.
The economic weapon have never been used before.
What is happening?
Several EU member states, including Germany, are said to be preparing to activate sweeping anti-coercion measures targeting U.S. businesses, Reuters reports.
The move would mark a sharp escalation if the bloc fails to reach a new trade agreement with U.S. President Donald Trump, who has floated a 30% tariff on EU goods.
What Is the Anti-Coercion Instrument (ACI)?
The EU’s Anti-Coercion Instrument, or ACI, officially came into force at the end of 2023.
Designed as a deterrent against economic blackmail, the ACI has never been used—until now, it has been treated more as a “nuclear option” in trade disputes.
More Than Just Tariffs: A Wide Arsenal
Unlike traditional trade retaliation tools, the ACI offers far broader scope.
It allows the EU to hit back at countries using economic pressure to influence member states’ policies, with options going well beyond imposing tariffs on imports.
The 10-Point Toolkit
In response to Trump’s threatened tariffs, the ACI outlines 10 categories of potential retaliatory actions.
These range from trade barriers and licensing restrictions to investment limits and digital service sanctions.
Public Procurement Could Be Hit Hard
One major area under consideration is public tenders—worth a staggering €2 trillion annually.
Under the ACI, U.S.-linked bids could be penalized or outright excluded if American products or services represent over 50% of a project.
Tech Giants in the Firing Line
Services where the U.S. holds a trade surplus with Europe are also on the radar.
That means digital platforms like Amazon, Microsoft, Netflix, and Uber could face new restrictions or operational hurdles within the EU.
Foreign Investment May Be Curtailed
The U.S. is the single largest foreign investor in the EU. Under the ACI, new limitations could be introduced to curb or regulate future American investments in strategic sectors across Europe.
IP, Finance, and Food
Other possible measures include restrictions on intellectual property protections, curbs on access to financial markets, and new regulatory barriers on chemicals and food imports from the U.S.—all designed to exert maximum leverage.
A Measured Yet Forceful Process
Before any action is taken, the European Commission has up to four months to assess whether a third country’s actions qualify as coercive.
If so, the final decision rests with a qualified majority of EU member states.
Timeline for Retaliation: Swift but Strategic
Once coercion is confirmed, the Commission initiates consultations with the foreign country.
If these talks fail, formal countermeasures can be adopted within six months—and come into effect within three more.
In urgent cases, this process could be expedited dramatically.
