The EU is planning to hit Silicon Valley with retaliatory measures if President Donald Trump follows through on threats to impose tariffs on the bloc, in the first use of a Brussels “bazooka” that could drag services into a trade war.
The European Commission is looking to use its “anti-coercion instrument” in a potential dispute with Washington, said two officials with knowledge of the plans, which would allow the EU to target US service industries such as Big Tech.
An official said “all options are on the table” and pointed to the ACI as the toughest response available without breaching international law.
The tool, which was drawn up during Trump’s first term and subsequently used as a deterrent against China, allows the EU’s executive arm to impose restrictions on trade in services if it determines that a country is using tariffs on goods to force changes in policy.
Trump’s threat to use tariffs to coerce Denmark to hand over Greenland and to press the EU to drop enforcement action against US technology companies would qualify, officials said.
Dubbed a “bazooka” by some EU officials when it came into force in 2023, the ACI allows the bloc to select from a wide range of retaliatory measures, such as revoking the protection of intellectual property rights or their commercial exploitation, for example, software downloads and streaming services.
It also allows the EU to block foreign direct investment or restrict market access for banking, insurance and other financial services groups.
A second official cautioned that while the EU was proficient in handling tariffs on goods, it could still balk at expanding a dispute into new areas including services and intellectual property rights.
Trump last week said he would “absolutely” levy tariffs on the EU, citing Brussels’ action against US tech companies and its large trade deficit in goods. He has not given details about when the measures would be adopted or whether the bloc could negotiate a reprieve, as Canada and Mexico have secured.
EU trade ministers met on Tuesday in Warsaw to discuss the US president’s threats. Officials briefed on the closed-door discussions said the majority expressed support for punitive action if necessary.
Trade commissioner Maroš Šefčovič said he wanted to negotiate a way to avoid tariffs but added: “If we are hit, we will react firmly.”
Šefčovič noted the bloc had a large deficit with the US in services even though it enjoyed a surplus in goods.
Laurent Saint-Martin, France’s trade minister, told the Financial Times that despite the ACI, the EU might need faster retaliatory measures. “Speed is one of the key issues, we have to be ready faster than last time. We have to be more united and faster.”
RoadandHardtail on
Make sure you hit those Kentucky Bourbon as well. I want those abominations gone from European market.
Glad-Audience9131 on
EU should start asking why lot’s of successful businesses start in EU then move to US and become rich.
Realistic_Lead8421 on
Problem is we need access to certain technologies we don’t have such as cutting edge LLMs te remain competititive in any field. Maybe th EU can fund a European LLM on par with the frontrunners.
Rndmized on
Sorry America that you had to become a broligarchy for EU to grow some balls but we take it
AgileAd1346 on
BlackRock watching their investments fall apart 👁️ 👄 👁️
Kento418 on
Yes! Hit them where in hurts!
First of all tax their revenue not profits so they won’t be able to move all their European profits to Ireland and pay 1% tax. Then ban X and Facebook.
pc0999 on
Good, but we should not wait to ban Xitter, Meta and other autoritarian propaganda tools.
NoNoBitts on
So our salary in EU is going to be even more lower and price of living even more higher, right ?
Baba_NO_Riley on
I think the one thing EU doesn’t realise that with all our flows and inadequacies, economic stagnation of recent times – EU is rich – both as a society and individual wealth – compared to any other part of the world. The infrastructure is incomparable better then almost any other part of the world of comparable size.
butwhywedothis on
Let’s also follow Canada’s lead and ban American products from Red states in EU.
ChoosenUserName4 on
I don’t think we really need to ban Tesla anymore, since it seems to be tanking nicely all by itself. I would still be for it of course, just to see Edolph Musk lose his mind on Twitter.
RiverKey9096 on
Good Idea! And pleased try to establish own european IT companiesnwith more value than SAP.
Dazzling_Analyst_596 on
Good luck with Ireland
Independent-Slide-79 on
Fafo
OkBug7800 on
All good until Microsoft, Google and Amazon hike prices in Europe with 200% or simply are forced to stop their services in Europe. Don’t know if it’s smart to target services where migrating away from isn’t that easy when there isn’t a legit alternative. Hitting the car industry is easier as you have a direct alternative.
bmiga on
I’ll believe it when I see them
Archyes on
Do i see this right? we could safe star wars from Disney?!
DiscussionOk6355 on
Amazon needs to be reeled in
Fit_Awareness4088 on
5 different threats to invade in 15 days… US is no longer an ally, as long as Trump is president. I just hope this nightmare ends in four years. Doubt it though.
SpaceAce1956 on
OK we leave NATO, then they have zero protection. Nobody will win but the USA. They will fold like a cheap suit. Truly the age of FAFO
AdminEating_Dragon on
I say let’s use it preemptively.
Tech billionaires turning conservative have already caused huge damage in Europe.
25 commenti
The EU is planning to hit Silicon Valley with retaliatory measures if President Donald Trump follows through on threats to impose tariffs on the bloc, in the first use of a Brussels “bazooka” that could drag services into a trade war.
The European Commission is looking to use its “anti-coercion instrument” in a potential dispute with Washington, said two officials with knowledge of the plans, which would allow the EU to target US service industries such as Big Tech.
An official said “all options are on the table” and pointed to the ACI as the toughest response available without breaching international law.
The tool, which was drawn up during Trump’s first term and subsequently used as a deterrent against China, allows the EU’s executive arm to impose restrictions on trade in services if it determines that a country is using tariffs on goods to force changes in policy.
Trump’s threat to use tariffs to coerce Denmark to hand over Greenland and to press the EU to drop enforcement action against US technology companies would qualify, officials said.
Dubbed a “bazooka” by some EU officials when it came into force in 2023, the ACI allows the bloc to select from a wide range of retaliatory measures, such as revoking the protection of intellectual property rights or their commercial exploitation, for example, software downloads and streaming services.
It also allows the EU to block foreign direct investment or restrict market access for banking, insurance and other financial services groups.
A second official cautioned that while the EU was proficient in handling tariffs on goods, it could still balk at expanding a dispute into new areas including services and intellectual property rights.
Trump last week said he would “absolutely” levy tariffs on the EU, citing Brussels’ action against US tech companies and its large trade deficit in goods. He has not given details about when the measures would be adopted or whether the bloc could negotiate a reprieve, as Canada and Mexico have secured.
EU trade ministers met on Tuesday in Warsaw to discuss the US president’s threats. Officials briefed on the closed-door discussions said the majority expressed support for punitive action if necessary.
Trade commissioner Maroš Šefčovič said he wanted to negotiate a way to avoid tariffs but added: “If we are hit, we will react firmly.”
Šefčovič noted the bloc had a large deficit with the US in services even though it enjoyed a surplus in goods.
Laurent Saint-Martin, France’s trade minister, told the Financial Times that despite the ACI, the EU might need faster retaliatory measures. “Speed is one of the key issues, we have to be ready faster than last time. We have to be more united and faster.”
Make sure you hit those Kentucky Bourbon as well. I want those abominations gone from European market.
EU should start asking why lot’s of successful businesses start in EU then move to US and become rich.
Problem is we need access to certain technologies we don’t have such as cutting edge LLMs te remain competititive in any field. Maybe th EU can fund a European LLM on par with the frontrunners.
Sorry America that you had to become a broligarchy for EU to grow some balls but we take it
BlackRock watching their investments fall apart 👁️ 👄 👁️
Yes! Hit them where in hurts!
First of all tax their revenue not profits so they won’t be able to move all their European profits to Ireland and pay 1% tax. Then ban X and Facebook.
Good, but we should not wait to ban Xitter, Meta and other autoritarian propaganda tools.
So our salary in EU is going to be even more lower and price of living even more higher, right ?
I think the one thing EU doesn’t realise that with all our flows and inadequacies, economic stagnation of recent times – EU is rich – both as a society and individual wealth – compared to any other part of the world. The infrastructure is incomparable better then almost any other part of the world of comparable size.
Let’s also follow Canada’s lead and ban American products from Red states in EU.
I don’t think we really need to ban Tesla anymore, since it seems to be tanking nicely all by itself. I would still be for it of course, just to see Edolph Musk lose his mind on Twitter.
Good Idea! And pleased try to establish own european IT companiesnwith more value than SAP.
Good luck with Ireland
Fafo
All good until Microsoft, Google and Amazon hike prices in Europe with 200% or simply are forced to stop their services in Europe. Don’t know if it’s smart to target services where migrating away from isn’t that easy when there isn’t a legit alternative. Hitting the car industry is easier as you have a direct alternative.
I’ll believe it when I see them
Do i see this right? we could safe star wars from Disney?!
Amazon needs to be reeled in
5 different threats to invade in 15 days… US is no longer an ally, as long as Trump is president. I just hope this nightmare ends in four years. Doubt it though.
OK we leave NATO, then they have zero protection. Nobody will win but the USA. They will fold like a cheap suit. Truly the age of FAFO
I say let’s use it preemptively.
Tech billionaires turning conservative have already caused huge damage in Europe.
Let’s not wait for another excuse.
Bad news
YEEES! 🇪🇺🏆
time to hop on r/selhosted