FX.co ★ France’s Macron ready to activate ‘trade bazooka’ in response to Trump’s Greenland tariffs

In response to tariffs announced by President Donald Trump targeting European countries, French President Emmanuel Macron intends to deploy the European Union’s anti-coercion instrument, informally known as the "trade bazooka." According to Le Monde, Macron urged the EU to use this mechanism to combat the threat of US tariffs, emphasizing the need for a unified and decisive European response to economic pressure.

The "instrument to counter coercion," which came into force in December 2023, has not yet been used. Branded a "bazooka" in trade circles, it allows the EU to restrict imports of goods and services. The bloc could adopt countermeasures, including tariffs, limits on trade in goods and services, restrictions on access to public programs and financial markets, and actions affecting intellectual property rights and foreign direct investment.

German Vice Chancellor Lars Klingbeil voiced concern over the prospect of Europe being blackmailed by Trump, stating that the US administration had "crossed a line." The readiness of European leaders to deploy a powerful trade instrument signals their recognition of the threat's severity and their intent to defend the interests of member states with a coordinated response.