Link Securities | According to a report published yesterday by the financial news website CNBC, the European Union (EU) appears to be considering the possibility of deploying its ‘anti-coercion instrument’ — designed as a ‘nuclear option’ to deter trade disputes — in response to the imminent threat of the US government imposing a 30% tariff on EU imports.
According to reports, several EU member states, including France and Germany, are considering applying ‘anti-coercion’ measures against the US if the bloc fails to reach a trade agreement with US President Donald Trump, EU diplomats told Reuters this week. The measures could force the EU to restrict US suppliers’ access to the EU market, excluding them from public tenders in the bloc, as well as imposing restrictions on the export and import of goods and services, and limits on foreign direct investment in the region.
The moment to deploy what has been called the EU’s ‘trade bazooka’ could also be approaching, as Trump’s trade dispute with the bloc reaches a critical point. Currently, the White House says it will impose a 30% tariff on EU imports to the US on 1 August if a trade agreement is not reached by that date. It has also indicated that the deadline is fixed, but noted that trade negotiations could continue after that date.
