The European Union is preparing to fire its most powerful economic weapon: the Anti-Coercion Instrument (ACI). Dubbed the “Trade Bazooka,” this legal mechanism was created in 2023 but has remained on the shelf—until now.
How the “Bazooka” Works: If the EU determines that Trump’s 10% tariff is a form of “economic coercion” intended to force Denmark to sell territory, the ACI allows the bloc to bypass standard WTO procedures and strike back immediately.
The €93 Billion Retaliation List: Brussels has “dusted off” a pre-prepared package of tariffs that would hit American exports in politically sensitive regions:
- Luxury & Lifestyle: A 50% duty on American Bourbon, Harley-Davidson motorcycles, and Levi’s jeans.
- High-Tech: Restrictions on U.S. cloud service providers operating within the EU.
- Industrial: Massive tariffs on Boeing aircraft components and U.S.-made electric vehicles.
Impact on U.S. Consumers: If this “nuclear option” is triggered, American consumers will see immediate price hikes on European imports—everything from French wine and Italian leather to German machinery. European Commission President Ursula von der Leyen stated, “We seek dialogue, but we will not be bullied into redrawing the map of Europe.”
