Filenews 21 January 2026
The European Union is taking another step towards a tougher trade confrontation with the US.
And this is as major European capitals support the preparation of its most powerful commercial weapon in the face of Donald Trump's threats of tariffs.
According to diplomatic sources cited by Politico, Germany is now siding with France, asking the European Commission to consider activating the so-called Anti-Coercion Instrument (ACI) if Trump does not back down on his threats to impose tariffs on eight EU countries that oppose his ambitions for Greenland.
Paris-Berlin convergence
Berlin's change of stance is seen as crucial, as it brings the EU closer to a dynamic response. According to five diplomats with knowledge of the discussions, the issue will be raised during the extraordinary summit of European leaders in Brussels.
"There is broad support for the view that the EU must prepare for all scenarios and have all the tools on the table," a European diplomat said, pointing out that the determination of member states has been strengthening in recent days.
Trump's threats and the stakes
Sentiment deteriorated further after Trump's announcement of 10% tariffs on NATO countries that oppose his moves on Greenland, including France, Germany and Denmark. This was followed by a threat of tariffs of up to 200% on French wines and champagne.
The US president's stance in his speech at the World Economic Forum in Davos is expected to largely determine the EU's next moves, at a time when European leaders are attempting, behind the scenes, to de-escalate tensions.
Commercial countermeasures and "heavy" tools
In addition to the ACI, an older retaliatory package is on the table that imposes tariffs on U.S. exports amounting to €93 billion. Diplomats leave open the possibility that these EU countermeasures will be activated immediately, while the most time-consuming process for the "commercial bazooka" will be developed.
The latter allows the EU to impose tariffs, restrict exports of strategic products or even exclude US companies from public tenders – options with significant economic costs for Europe itself.
Pressure for European unity
The activation of the "commercial bazooka" requires the support of at least 15 member states. Attention is now turning to Italy and Poland, with Rome appearing more cautious, preferring de-escalation. However, the convergence of France and Germany increases the pressure for a united stance.
"We don't want to use these tools, but if necessary, we will," said German Chancellor Friedrich Merz, underlining the logic of deterrence.
Increased EU tolerance for the cost of activating the commercial bazooka
Unlike in 2025, when the EU had avoided escalating into a similar trade dispute, European capitals now appear more willing to bear the costs. As diplomats note, "this is no longer a simple disagreement around tariffs, but a matter of necessity."
The need to examine the ACI is supported even by German industry, with the president of the VDMA machine builders' association stressing that, despite the effects of US tariffs, the EU must respond decisively.
