US Treasury Secretary Scott Bessent on Tuesday dismissed the possibility of the EU using an anti-coercion instrument in the face of US President Donald Trump’s threat to increase tariffs until the US is allowed to buy Greenland.
In an interview with CNBC, Bessent said he predicted the EU’s next move would be to form a working group. The EU’s never-used Anti-Coercion Instrument could limit access to public tenders, investments or banking activity or restrict trade in services.
The Anti-Coercion Instrument (ACI), nicknamed the trade bazooka, is a regulation of the European Union that was adopted in November 2023, and that entered into force on 27 December 2023. It aims to protect the EU and its member states from economic coercion by third countries and provides a framework for EU action, including examination, engagement, and the adoption of countermeasures.
French president Macron has pushed for the EU to consider the first use of its Anti-Coercion Instrument, which could limit U.S. access to public tenders or restrict trade in services such as tech platforms. Macron said on Tuesday during his speech at Davos , it was “crazy” it had gone that far.
FRANCE24
