The European Union could deploy a powerful trade tool, dubbed the “trade bazooka,” against the United States if its interests are not respected, French President Emmanuel Macron has warned. Speaking at the World Economic Forum in Davos, Macron stated that the US is seeking to weaken and subordinate Europe through economic competition, which could lead to a trade war with only losers.
Macron’s remarks come amid rising tensions between the US and Europe over trade and economic issues. The US has imposed tariffs on European goods, and President Donald Trump has threatened to impose new tariffs on countries opposing his plans to annex Greenland. In response, the EU is considering reviving a package of retaliatory tariffs on American goods worth €93 billion ($108 billion).
The EU’s Anti-Coercion Instrument, or “trade bazooka,” is a powerful trade tool that can be used to counter unfair trade practices. Macron emphasized that the EU must use this tool when its interests are not respected. The EU has already drawn up a list of US goods that could be subject to tariffs, including agricultural products, machinery, and pharmaceuticals.
The trade tensions between the US and Europe have been escalating in recent months, with both sides imposing tariffs on each other’s goods. The EU has accused the US of using trade agreements to undermine its export interests and weaken its economy. The US, on the other hand, has argued that its trade policies are necessary to protect its own economic interests.
The dispute over Greenland has added to the tensions, with the US seeking to impose tariffs on countries that oppose its plans to annex the autonomous Danish territory. The EU has rejected the US plans, and the issue is likely to be a major point of contention in future trade negotiations.
As the trade tensions continue to escalate, the EU is preparing to defend its interests. The bloc is considering imposing tariffs on US goods and using its “trade bazooka” to counter unfair trade practices. The outcome of the trade dispute is uncertain, but one thing is clear: the EU is determined to protect its economic interests and will not back down in the face of US pressure. The situation will be closely watched in the coming weeks and months as the two sides engage in further trade negotiations.
