EU prepares response to Trump's blackmail

Brussels is considering imposing tariffs on US goods worth a total of €93 billion or restricting US companies' access to the single European market, according to the Financial Times.

The current situation has escalated into the most serious crisis in transatlantic relations in decades. The action plan in response to Trump's threats was discussed by 27 EU ambassadors to provide European leaders with leverage ahead of key meetings with the US president at the World Economic Forum in Davos, which starts this week.

The EU is preparing a set of retaliatory measures, which includes two main areas. The first is the reactivation of a list of tariffs worth €93 billion, which was prepared last year but suspended until February 6 to avoid a full-scale trade war.

The second, more radical step is the use of the so-called Anti-Coercion Instrument (ACI). This mechanism, adopted in 2023, has never been used before. It allows for the restriction of investments and the blocking of exports of services, which could deal a painful blow to American tech giants (Big Tech) in the EU market.

France is the most vocal advocate of using ACI. Paris and Berlin are already coordinating a joint response, and the finance ministers of both countries are planning a meeting ahead of a Europe-wide discussion. At the same time, most EU member states are in favor of attempting dialogue with Trump before resorting to direct confrontation, using a “carrot and stick” approach.

“Trump is using pure mafia methods. We have clear instruments of retaliation at our disposal if this continues. But at the same time, we want to publicly call for calm and give him the opportunity to back down,” said a European diplomat.

Trump's threats definitely justify the ACI, as this would be classic coercion.

As a precautionary measure, the largest factions in the European Parliament have decided to postpone the vote on reducing tariffs on US goods, which was planned as part of previous agreements.

European Commission President Ursula von der Leyen said on Sunday that Europe would stand firm on its commitment to protect the sovereignty of Greenland and the Kingdom of Denmark. We will always defend our strategic economic and security interests.

In Davos, the agenda of the meeting of Western national security advisers was urgently changed: instead of focusing exclusively on peace talks on Ukraine, a significant part of the time will be devoted to the crisis surrounding Greenland.

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