The European Union may activate one of its strongest trade mechanisms in response to US President Donald Trump's threats to impose tariffs on European goods. This mechanism, known in political circles as a "trade bazooka," is considered the most powerful economic tool in the EU's arsenal and involves broad restrictions.
According to the publication Politico, the "bazooka" in question envisages the imposition or increase of customs duties, the restriction of exports and imports through quotas and licenses, as well as restrictions on trade in services. Furthermore, the EU may restrict access to public procurement, foreign direct investment, intellectual property rights, and access to financial markets within the Union.
According to the source, among the EU's response options is the imposition of tariffs amounting to €93 billion on goods of US origin. This tariff list was prepared last year, but its implementation was suspended until February 6 to prevent a "full-scale trade war."
In addition, the EU is considering the sale of US government bonds and economic rapprochement with China. Although the European Union is trying to strengthen trade relations with Beijing, China remains the EU's second-largest trading partner, and competition risks are being seriously assessed against the backdrop of this rapprochement.
It is noted that the consent of the majority of EU member states is required to impose tariffs against the US. France supports strict measures in this regard, while Germany approaches open confrontation more cautiously.