The European Union (EU) prioritizes dialogue over escalation, according to Olof Gill, the EU's trade spokesperson. "Sometimes the most responsible leadership is restraint," Gill said today, emphasizing ongoing efforts to engage the US at all levels. He added, "We are trying to remain calm, steadfast, serious, and responsible, because, in our view, that is the demeanor of a leader."

The EU's trade spokesperson, Olof Gill. Photo: Euro Commission

However, Gill also stressed that if US President Donald Trump follows through on his tariff threats, the EU "always has tools at hand and is ready to retaliate." He noted, "People ask me if the anti-coercion instrument will be reconsidered? It has never been off the table."

President Trump shocked Europe on 17/1 by announcing plans to impose a 10% tariff on six EU members—Denmark, Finland, France, Germany, the Netherlands, and Sweden—along with two non-bloc countries, the UK and Norway. He stated these tariffs would take effect from 1/2, increase to 25% from 1/6, and remain in place until the US reached an agreement to acquire Greenland "completely and fully."

The EU promptly held an emergency ambassador-level meeting to persuade Washington against imposing tariffs on its allies and to prepare retaliatory measures. Leaders from the 27-nation bloc are expected to convene an emergency summit in Brussels, Belgium, on the evening of 22/1 to further discuss how to respond to one of the most serious transatlantic crises in years.

One retaliation option under consideration involves imposing tariffs on 93 billion euro (over 107 billion USD) worth of imported US goods. This measure was announced last year as a response to tariffs from Washington but was postponed after both sides reached an agreement in 7/2025. This measure could automatically trigger on 6/2, immediately after the six-month suspension expires.

A second retaliation option discussed by the EU is the anti-coercion instrument (ACI). Effective from late 2023 and dubbed a "trade bazooka," the ACI is the EU's strongest trade retaliation measure and has never been activated. This tool could restrict access to public procurement contracts, investment or banking activities, or limit trade in the service sector, an area where the US holds a surplus with the EU. A source from the bloc indicated that the tariff option has received broader support than activating the ACI.

Despite this, aides to French President Emmanuel Macron stated that he would ask the EU to activate the ACI against Washington if President Trump implements his tariff threat.

By Vu Hoang (According to AFP, Reuters)