France Demands EU Trigger Anti-Coercion Tool After Trump Slaps 10% Tariff on Eight European Nations
Trade tensions just escalated—and the EU's new weapon is about to get its first live-fire test.
Europe Strikes Back
France is pushing Brussels to activate the bloc's freshly minted anti-coercion instrument. The move comes as a direct counter to a sweeping 10% tariff announced by the U.S., targeting eight European nations. It's a classic power play—one that risks spiraling into a full-blown trade skirmish.
The 10% Gambit
That number isn't arbitrary. It's a calculated, headline-grabbing figure designed to pressure and provoke. For the affected economies, it translates to immediate friction at the border and potential billions in disrupted commerce. The EU's response mechanism, once theoretical, now faces a brutal real-world stress test.
Finance's Old Guard on Notice
While traditional markets brace for volatility, the situation underscores a persistent flaw in legacy finance: its absolute dependence on political goodwill. One decree from a major economy can freeze assets, redirect capital flows, and rewrite the rules overnight—a level of centralized control that makes crypto's permissionless ethos look less like rebellion and more like rational contingency planning. After all, in the world of geopolitical brinkmanship, your sovereign wealth fund is only as safe as the latest diplomatic communiqué.
The chessboard is set. Europe is reaching for its regulatory weapon, and the next move could redefine cross-Atlantic trade for years. Watch the tariffs—but watch the retaliation closer.
Trade deal approval now in question
Trump posted on social media that the tariff rate would jump to 25% in June unless a deal is made for the “Complete and Total purchase of Greenland.” The declaration has thrown existing trade agreements between Washington and Brussels into doubt.
The person familiar with Macron’s position said Trump’s decision to LINK tariffs to Greenland purchases raises serious questions about a trade agreement finalized between the EU and the US last year. That agreement has been partially put into effect but still requires parliamentary approval, which now appears unlikely to proceed.
EU ambassadors from member nations are scheduled to meet on Sunday to determine how the bloc will respond, according to another person with knowledge of the situation.
Germany’s SPD parliamentary group, which forms part of Chancellor Friedrich Merz’s governing coalition, urged the European Commission to MOVE quickly and develop “concrete countermeasures” against the United States. A person familiar with German planning said the government is reviewing all possible responses but hasn’t settled on specific actions yet.
Manfred Weber, who leads the European People’s Party, the biggest political faction in the European Parliament, declared Saturday that approving the EU-US trade deal is no longer feasible.
Powerful tool remains unused
Finnish Prime Minister Petteri Orpo issued a warning that the European Union “has the means to respond,” though he expressed hope to avoid that outcome. In comments to YLE radio, Orpo said he has called for an emergency European Council meeting to align and craft a unified approach among European nations and Denmark.
The anti-coercion instrument has never been activated since its creation. It was built mainly to discourage aggressive trade actions and, when necessary, to counter intentional coercive moves from other countries that use trade policies to influence EU or member state decisions.
Tariffs, new taxes on tech firms, or particular restrictions on investments within the EU are examples of potential acts under the instrument. Other options include preventing businesses from competing for government contracts throughout Europe or limiting access to specific EU market sectors.
Last year, Macron thought about using the anti-coercion tool, but he changed his mind when the EU and the US were in protracted talks over planned tariffs.
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