EU Under Pressure to Launch Trade "Bazooka" on Trump Threats

Pressure is mounting on the European Union to deploy its anti-coercion instrument in response to new tariffs announced by President Trump. Paris is strongly advocating for the activation of this trade "bazooka," which would aim to block Americans' access to European public procurement markets and limit their investments.

Details:

These calls come amid escalating trade tensions between the United States and the EU. France believes these measures are necessary to deter Trump from imposing further protectionist actions detrimental to the European economy. Options on the table include barring US companies from participating in European government tenders and imposing restrictions on foreign direct investment from the US.

Potential Impacts:

• Restricted access for US firms to European markets.
• Potential impact on US investments in Europe.
• Possible escalation of trade tensions.

The question remains whether the European Commission will be willing to take these escalatory steps, which could lead to a full-blown trade war.