Europe's 'Trade Bazooka' Eyed Against Trump's Greenland Tariff Threats

• US President Donald Trump has threatened 10-25% tariffs on eight European countries if they don't negotiate the "Complete and Total purchase of Greenland."
• Europe is considering activating its Anti-Coercion Instrument (ACI), dubbed a "trade bazooka," designed to counter economic coercion, potentially against the US.
• The ACI allows the EU to impose retaliatory tariffs, service restrictions, investment limits, and public-contract bans, among other measures.
• The instrument was initially conceived to counter actions from non-allied states like China, making its potential use against the US unprecedented.
• Activating the ACI is a complex, last-resort process requiring a qualified majority of member states, with potential delays and risks for both economies.

Why It Matters: Europe may deploy its powerful 'trade bazooka' against US tariff threats over Greenland, risking transatlantic economic conflict.