A few days ago, we discussed the $8 trillion that Trump’s wealthy American backers have tied up in debt and is funded by Europe, and the power that funding gives them over the U.S . economy – an important point in a potential trade war over Greenland. Next, we discuss the European Union’s (E.U.’s) economic bazooka that may be used, if it is needed, to protect the sovereignty of its people.
Though it’s currently off the table, Trump recently decreed that eight European nations would be hit with an increasing set of tariffs, beginning at 10% on February 1st and reaching 25% by June 1st, unless these countries let him violate the nation of Greenland, by taking it against the will of Greenlanders and the country of Denmark. Greenland is rich in minerals – but if anyone decides if those minerals should be brought out of the ground for profit, it should be the Greenlanders who live there. not Donald Trump and his increasingly bizarre array of wealthy friends.
The potential tariffs would have targeted Denmark, Sweden, Norway, Germany, France, the U.K, Finland and the Netherlands. The charges would have been added to already existing tariffs for goods those countries send to the U.S. The U.K. now deals with a 10% tariff, while the E.U. deals with a tariff at 15%.
European diplomats appear to have finally had enough of these threats, and recently held an emergency discussion in Brussels to weigh their best and most appropriate responses to Trump’s tariff blackmail. France appeared to be taking the lead among those countries ready to finish the blackmailer once and for all. That country is aching to use the E.U.’s “bazooka” option, a counter designed to deal with economic blackmailers like Trump, a policy known as the “Anti-Coercion Instrument” (ACI).
The ACI is far more pervasive than a typical tariff, which only places extra duties on physical products sold in a marketplace. The ACI appears to do that as well, but it also places duties and outright bans on services and intangible assets.
European council data reveal that the 2024 trade totals between the E.U. and the U.S. came to 1.68 trillion euros ($1.97 trillion). The E.U. did have the greater number of physical products to trade – but the U.S. offered much more in services and financial assets,which are usually not normally targeted by tariffs. But the ACI seems tailor-made to counter Trump’s tariff blackmail, since it would either place tariffs on – or completely ban – those services and financial assets as well. This may hammer the finances of some of Trump’s key wealthy supporters, say French officials and others keen on using the weapon against the blackmailer-in-chief.
The E.U.’s own webpage on this weapon shows it is tailor-made to deal with someone like Trump:
The ACI is a response to the rising problem of economic coercion, and aims to protect the interests and sovereign choices of the Union and its Member States. It provides a means to act in situations where a non-EU country unduly interferes in the policy choices of the Union or its Member States by applying or threatening to apply measures affecting trade or investment.
The primary objective of the ACI is deterrence. The instrument will, therefore, be most successful if there is no need to use it.
Nevertheless, if a third country resorts to coercion, the ACI provides a way to respond to coercion. The instrument allows the Union to formally identify instances of economic coercion and to respond, where possible through dialogue and engagement, but also – as necessary – through response measures.
The ACI provides a framework for the Union to pursue reparations for the injury caused by the economic coercion.
At the same time, the instrument strengthens international coordination of efforts to deal with economic coercion by plugging into international frameworks to respond to coercion.
But will Europe stand together, and use the weapon designed to counter and economically ruin the Trump Administration, if it must? Will they effectively pull the trigger and stop Il Douche at his Munich? Or will they prove to be a horde of Neville Chamberlains, who are born for appeasement and are only ready to fight when it’s much too late?
