Most countries in the European Union (EU), including Germany, are now considering measures to retaliate with tariffs on the United States if trade talks with US President Donald Trump fail to reach an agreement.
This measure is related to the EU's Anti-Coercive Instrument, a mechanism that comes into force at the end of 2023.
So far, it has not been used because it is considered the most extreme option and is only used if absolutely necessary, as a deterrent from major implications.
Among the measures currently in focus is the use of (ACI), which allows the 27 European Union countries to respond to any economic pressure from outside countries that try to force member states to change their policies.
ACI offers much broader powers than simply imposing retaliatory tariffs on US exports.
There are 10 potential action steps in response to the threat of 30% tariffs on EU imports by August 1.
This measure is designed not only as a punishment, but also to protect EU policies and economic interests from external pressure.
The ACI could also lead to measures to affect services where the US has a trade surplus with the EU, including from digital service providers Amazon, Microsoft, Netflix or Uber.
In addition, the ACI also opens the way to curb foreign direct investment (FDI) from the US, which is currently the largest foreign investor in the EU region.
