EU Prepares 'Trade Bazooka' to Counter U.S. Tariffs

France's trade minister Nicolas Forissier warned that the EU is ready to respond to U.S. tariffs with a range of measures, including the 'trade bazooka' against U.S. technology firms. This follows President Trump's decision to impose a global 10% tariff after some were ruled illegal.

In response to the United States' recent imposition of a global 10% tariff, France's trade minister Nicolas Forissier has announced that the European Union is prepared to retaliate with substantial measures. He made this statement in an interview with the Financial Times, highlighting the discussions taking place between EU member states and the European Commission on the best counteractions.

Forissier underscored potential EU responses, including deploying the 'trade bazooka', a powerful anti-coercion instrument designed to impact American technology companies. This tool offers a variety of options from export controls to service tariffs and even the potential exclusion of U.S. firms from EU procurement deals.

Additionally, a previously suspended set of retaliatory tariffs amounting to over €90 billion on U.S. goods may be enacted if necessary, Forissier warned. This stance emerges after the U.S. Supreme Court deemed many existing tariffs illegal. These developments mark a significant moment in EU-U.S. trade relations.

(With inputs from agencies.)