EU responds tit-for-tat to U.S. tariff threat…considers activating ‘trade bazooka’

Eight European countries: “Solidarity with Greenland…tariff threats weaken transatlantic ties”

As U.S. President Donald Trump moves to impose tariffs on European countries in an effort to annex Greenland, the European Union (EU) is considering activating its Anti-Coercion Instrument (ACI).

French President Emmanuel Macron said on the 18th (local time) that he has been in contact with leaders of major European countries and announced plans to formally push for triggering the ACI. An official at France’s Élysée Palace said, “President Macron will ask the EU to activate the so-called ‘ACI,’ which could restrict U.S. companies’ access to the single market.” Dubbed a “trade bazooka,” the ACI is a measure that allows the EU to restrict trade—covering services, foreign direct investment, financial markets, public procurement and intellectual property rights—against third countries that economically threaten the EU or its member states.

A day earlier, Bernd Lange, chair of the European Parliament’s Committee on International Trade, also urged the European Commission to activate the ACI, and suggested the possibility of linking the Greenland issue to the European Parliament’s approval of a trade agreement. The European Parliament is scheduled to put a trade agreement with the United States to a vote on the 26th–27th of this month, but there are calls to postpone it due to the Greenland issue.

Eight European countries that have been threatened with tariffs again expressed solidarity with Greenland and criticized the tariff threat. According to the Associated Press and others, the United Kingdom, Germany, France, Sweden, Norway, Finland, Denmark and the Netherlands issued a joint statement that day, saying, “We stand in full solidarity with Denmark and the people of Greenland.”

The eight countries added, “As NATO allies, we are committed to strengthening Arctic security—our shared transatlantic interest,” and said, “The ‘Arctic Endurance’ exercise conducted in Denmark together with allies reflects this necessity and poses no threat to anyone.”

They stressed, “Tariff threats could weaken transatlantic relations and trigger a dangerous vicious cycle,” adding, “We will continue a united and coordinated response and remain committed to defending our sovereignty.”

Reporter Kim Dong-hyun 3code@hankyung.com