France wants the EU's "most powerful tool" against the US in case of new tariffs: Bloomberg learned what it is about

France wants the European Union to consider using its most powerful response against the US for the first time if President Donald Trump uses tariffs to unfairly force the bloc to change policy, Bloomberg reports, UNN writes.

Details

France has joined a small group of EU countries that believe the so-called "anti-coercion instrument" - an instrument designed to retaliate against countries that use trade and economic measures coercively - should be on the table, according to people familiar with the matter, even if it is not the best course of action, one of them said.

The US plans to introduce large-scale tariffs for global partners as early as April 2. Trump said the tariffs would correct non-tariff barriers that he considers unfair, such as domestic rules and how countries collect taxes, including the EU's value-added tax. The EU says its VAT is a fair, non-discriminatory tax that applies equally to domestic and imported goods.

The anti-coercion instrument, which is subject to a number of conditions and steps, would ultimately allow the EU to apply a wide range of retaliatory measures, including restrictions on trade and services, as well as certain intellectual property rights, foreign direct investment and access to public procurement.

The European Commission, the EU's executive body that handles trade issues for the bloc, is not currently considering the "anti-coercion instrument," said another person who spoke on condition of anonymity.

Another person said that any discussions about using the tool were remote, as the EU first needed to see what tariffs the US would announce on April 2 and whether the "anti-coercion instrument" could be applied.

The European Commission may propose to use the instrument, but then the member states must determine whether there is a case of coercion and whether to apply it. Throughout the process, the EU will try to consult to find a solution, and may also cooperate with like-minded countries facing similar pressure.

EU trade chief Maroš Šefčovič said on Wednesday that he had no details on the new US tariffs and that the European Commission would need to continue preparations and maintain a flexible approach. As a result, the EU is not expected to immediately outline its response to Trump's future measures as quickly as it did in the metals dispute, one source said.

EU postpones tariffs on the US until mid-April to review countermeasures20.03.25, 16:40 • 16841 view

Šefčovič also announced that the bloc's response to metal tariffs would be delayed until mid-April, allowing more time for negotiations with the US. European Commission President Ursula von der Leyen and her chief of staff have not yet been able to interact directly with Trump. The US president has repeatedly criticised the EU, saying it was created to "cheat" the US.