EU Gears Up Trade 'Bazooka' in Response to US Tensions Over Greenland

Amid tensions sparked by US President Donald Trump's comments on Greenland, the EU is preparing financial countermeasures against the US. Central to this is the 'trade bazooka,' a suite of restrictive trade measures. Created in response to China-Lithuania tensions, its use remains contentious among EU nations.

The European Union is bracing for a trade showdown with the United States, prompted by former US President Donald Trump's remarks regarding Greenland. In response, the EU is considering employing its 'trade bazooka,' a robust set of financial countermeasures.

Dubbed the 'Anti-Coercion Instrument,' this powerful toolkit, championed by French President Emmanuel Macron, empowers the EU to impose steep tariffs and block trade within its market. Despite its potential to unleash substantial economic repercussions, several EU member countries remain unconvinced about utilizing such measures.

The 'trade bazooka' stems from past international disputes, notably the trade restrictions China imposed on Lithuania. While promoting deterrence as its primary aim, activating this tool would require a six-month lead time, raising questions about its swift applicability.

(With inputs from agencies.)