EuroWire, BRUSSELS: French President Emmanuel Macron is set to urge European Union leaders to consider activating the bloc’s Anti-Coercion Instrument, a powerful but never-used trade tool, as the EU weighs its response to new tariff threats from U.S. President Donald Trump linked to a dispute over Greenland.
Macron’s push comes after Trump said he would impose tariffs on imports from several European countries unless the United States is allowed to purchase Greenland, an autonomous territory within the Kingdom of Denmark. Trump has said a 10% tariff would take effect on Feb. 1, with the rate rising to 25% in June. The warning has prompted emergency consultations among EU diplomats and renewed focus on the EU’s options for a coordinated trade response.
The French presidency has indicated Macron will ask that the Anti-Coercion Instrument be placed on the table as a deterrent and as part of the EU’s broader toolbox. The instrument, which entered into force on Dec. 27, 2023, was created to address economic pressure from third countries and to give the EU a structured path from dialogue and investigation to countermeasures if coercion is established.
EU officials and member states have also discussed other possible steps, including a large package of retaliatory tariffs previously prepared for transatlantic disputes and later suspended. Some officials have cited a figure of up to 93 billion euros in potential measures, though the scope and timing would depend on political agreement among member states and procedural steps at the European Commission and Council level.
Trade “bazooka” tool and what it allows
The Anti-Coercion Instrument allows the EU to respond with a range of measures once a determination is made that coercion is taking place and consultations have failed to resolve it. Options include imposing or increasing customs duties, introducing import or export restrictions, applying licensing or quota requirements, and taking measures affecting services and investment. It also allows restrictions linked to public procurement, including limiting participation by companies from the country deemed to be applying coercion.
The current dispute centers on Greenland’s status and sovereignty. Denmark has repeatedly said Greenland is not for sale, and Greenland’s leaders have emphasized the territory’s right to decide its own future. The tariff threats have triggered political backlash across Europe and raised concerns among European governments about using trade measures to pressure allies on territorial questions.
Member states seek unity as consultations intensify
In Brussels, EU ambassadors and senior officials have held meetings to assess the legal and political pathways available, including whether conditions could be met to move toward use of the Anti-Coercion Instrument. Several member states have argued that the EU should respond in a unified manner, both to protect the integrity of the single market and to avoid fragmented national responses that could weaken the bloc’s leverage.
Germany has signaled support for discussing tougher options alongside France, while some other capitals have urged caution about escalating trade retaliation. The European Commission, which has primary responsibility for EU trade policy, has emphasized that it will coordinate any response and that formal steps require evidence-gathering and consultation under the instrument’s framework.
The threatened tariffs would affect a broad set of transatlantic commercial ties, with potential impact across industrial goods, consumer products and supply chains that link U.S. and European manufacturers. EU officials have stressed that their priority remains de-escalation through dialogue while preparing options to protect European interests if tariffs are implemented.
The episode has also reopened debate inside the EU over how quickly the bloc can move from political signaling to concrete countermeasures under the Anti-Coercion Instrument. The law was designed to deter pressure before damage occurs, but it also sets out procedures intended to ensure proportionality and legal robustness, which can take time to complete.
EU leaders are expected to continue consultations in the coming days as they assess both the tariff timeline laid out by Trump and the range of EU countermeasures under existing trade rules and the Anti-Coercion Instrument. The European Commission is expected to keep member states briefed as discussions proceed, while national leaders weigh how far to go in matching U.S. pressure with EU trade power.