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EU Trade Bazooka
January 28 , 2026
11 hrs 0 min
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- The European Union (EU) is considering the use of its trade ‘Bazooka’ (Anti-Coercion Instrument – ACI) for the first time to counter United States (US) tariff threats linked to Greenland tensions.
- The Anti-Coercion Instrument (ACI) is a legal tool that allows the EU to respond to economic pressure or coercive trade actions by other countries.
- The ACI was created by the European Commission in 2021 after China imposed trade restrictions on Lithuania over Taiwan-related ties.
- Under ACI, the EU can restrict imports and exports, block public procurement, limit foreign investment, and deny market access.
- Activating the ACI is a slow process and may take at least six months due to assessments and approvals.
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