EU's Anti-Coercion Move Amid Trade Tensions

Treasury Secretary Scott Bessent refuted the likelihood of the EU deploying its Anti-Coercion Instrument against U.S. tariff threats involving Greenland. He suggested the EU may instead create a working group. The instrument, if used, could restrict trade and investment activities with the U.S.

In a startling development, Treasury Secretary Scott Bessent dismissed the idea of the European Union activating its Anti-Coercion Instrument in light of President Trump's recent tariff threats.

Bessent, speaking to CNBC, anticipates that the EU's strategic response will likely involve forming a dedicated working group rather than immediate drastic measures.

This rarely-used instrument possesses the power to constrain public tenders, investments, and banking activities or limit trade in services, should the EU choose to employ it.

(With inputs from agencies.)